Each deal is going to have its own unique pluses and minuses, and in reality it is all about risk and reward.  

Starting a private money lending business can be rewarding, but it requires careful planning and a solid understanding of the real estate market.

I would think that if the tenant is paying for the addition, they would want to have a minimum of a 5 year lease, if not a 10 year lease in place in order to pay for the improvements.As in any real estate investment it is risk reward, I think with the current market and a stable vet tenant, that if you can get a 5+ year lease, it would be worth it to let them expand.If you are worried about value, you could always talk to a commercial real estate appraiser.

@Hunter SmithStarting your real estate journey in Southern Arkansas can be a rewarding experience.

There’s definitely a lot of opportunity there, and I'm sure you'll find it both rewarding and challenging.A key part of successful fix and flip projects is securing the right funding.

@Stuart Udis you sound like one of the good guys :)  This line is GOLD, "90% of people who post on BP about entity formation or transferring properties from their personal name to an LLC cannot articulate the risk they believe they are protecting against"Its a game of risk/reward.

The usual risk/reward curve applies to real estate the same as it does to other investments.

Want higher reward?

Understand risk/reward in how you move on that, and how comfortable you're keeping yourself.

Passive landlord is a long game enter anytime stay for decades and most will do just fine.Active engagement same thing enter anytime and your reward is how hard you work identifying the hot ticket at the time  access to capital etc etc..