Let's check the Regulations 1.21-1 which clarify Section 21.

Current PM behind one month payments to owner and already collected from tenants.How to get Security Deposits of the existing tenants from current PM and how to transfer to new PM company.

Does the operational company already exist and have income history?

Ensure that you check your state's regulations and requirements regarding security deposits.

@Frankie Paterno In most places you will likely find that your $1.2MM will go much further with existing built as opposed to developing.

In my experience, a property with multiple cottages and outbuildings can provide all kinds of creative strategies...some folks try short-term rentals or even specialized retreats if local regulations allow.

It’s also worth diving into local regulations and HOA rules—they can shift quickly in coastal markets like this.

What is the best way to best way to deal with the existing tenants? 

With your $1,100 rent and the potential for an improved loan structure, it's worth reaching out to DSCR lenders who are flexible on reserves and leverage.Key Points:Highlight your strong FICO score and existing equity.If your DSCR ratio falls short, some lenders allow exceptions for high-FICO borrowers.

For the past 4 years I've been focused full-time on the niche of pre-existing non-conforming land parcels and/or land that is considered undevelopable.Basically, I focus on rehabbing lots instead of rehabbing houses and I have virtually no competition up here in the New England Area.Is anyone else here doing this?