Travis, you’re absolutely correct, and I truly appreciate your insight.

If created correctly, it could be sold (in full or part) to a note investor that would payoff the underlying 1st from proceeds when they bought the wrap note. 

Ensure your flip profits exceed the LOC costs, maintain a financial buffer, and compare it to private or hard money loans.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

She is renting the apartment, not the entire property.It's very important for landlords to understand Landlord-Tenant rights and maintain control of the property.

It’s a balancing act of controlling costs while also controlling risk of personal injury to your tenants and property visitors as well as maintaining goodwill with all involved at the properties. 

Focus on undervalued properties, prioritize high-ROI renovations, and refinance to pull equity for future deals while maintaining 20-25% equity.

For real estate investors, adapting to these changes isn’t just about avoiding fines—it’s about protecting your investment and maintaining a solid reputation. 

Tenants should certainly take responsibility for maintaining the property and promptly informing the landlord of any maintenance concerns.

However, if you clearly communicated a $15K budget, I’d stick to that and ask them to discuss the overages with the contractor to find a resolution.As a side note, always try to maintain reserves for your properties.