I like to be transparent.2nd and probably most importantly, never tell a qualified handicapped applicant that they can't rent or they can't do any modifications to the property, and you can't ask for a higher deposit from them either.

Tenant agrees to not do painting, wallpapering or structural modifications to the premises.

Even though designated as a flowthru,  you might just file a Corp return where all the losses are occurring - - perhaps that would necessitate retracting the flowthru designation.

Hence, I lend hard money/private capital.I do sometimes buy NPN, but only commercial and only when I can get the borrower to sign modification documents.  

Frank my loan is in foreclosure at this time I am trying to do a modification but I would like to have a private lender in place in case the modification doesn't work if you like to discuss it with me to see if we are a good fit. my email is  

Slight modification of facts and circumstances (so subtle you may not see it, but a talented CPA will) can, will and does alter the response.Publishing YOUR answer does not mean you are publishing THE answer.

A few years back a few of us in North Central CT got together for a few meals to go over some lease templates and customized leases that we have acquired over the years, and basically took what we liked from each, made some slight modifications, then allowed for some space to modify for each lease.

To name a few:Wall modification and drywall patching for new ductwork locationsFloor plan modification - You will need to build-out of mechanical closets to house the furnaces for each unit which will alter the floor planA/C - Not sure what the existing cooling system is, but the new heating system could effect the cooling systemElectrical - May need new electrical panels to accommodate the furnace load, & wiring to power the new furnace unitsWith that said, I think this could easily cost over $5,500 a unit when you consider these additional scopes of work.I would highly recommend getting in touch with a local HVAC contractor who can provide some insight on the construction considerations & costs as apart of your due diligence.

There are two sets of guidance HUD issues 2013 and 2020, you should read them both.Here is the only link that I can get to attach:Joint Statement on Reasonable Modifications - March 5, 2008 (hud.gov) 

In my case, these were the bank's requirements:- The loan had to be one or more years old- Loan to value (LTV) 80% or less- Payments are current and no payments have been 30 days past due in the last 12 months- The loan has not been modified through the Home Affordable Modification Program (HAMP) or other modification program where escrow is a requirement- Member has never missed a payment on an item otherwise payable from escrow- The bank has current evidence of the member's hazard insurance policy- The escrow account must have a positive balance and have no escrow advancesSo it can be done.