I say you are VERY wrong.In my area older renovated houses demand top dollar on rents and I can find distressed properties or motivated sellers so I can buy at huge discounts for cash.I do not have constant repairs as I fix them up correctly after I buy them.House values are based on comps.

I'm assuming this won't be rented to a Section 8 tenant, but I often work with my CFO clients and set a "minimum rent" for their property at the Fair Market Rent (FMR) and usually increase it from that number based on the developer's desired tenant.

Based on that number of units I would expect much higher figures - did you buy these buildings all/mostly cash?

Also as I understand it qualification for these loans are based on the property as opposed to the borrower.

@Sean Regan We provide a breakdown on scoping based on "required" vs "recommended".

We can help you select the right locations based on our years of experence as investors.

Lol, I'm just guessing based on experience that the value of the existing SF homes goes way down.

Just based on the info you provided I would take the loss and move on.

But to date, I've just set my rents at a rate that accounts for me having to pay the water bill - and informed the residents that each year I'll increase the rent based upon my expenses (including water), so keeping the bill down helps me to help them.But one problem this could cause is if increasing the rent to cover the water bill then places your rent above the market rate.

As someone who occasionally works with these investors, I always try to emphasize the challenges that come with real estate like managing renovations, dealing with tenants, and navigating market fluctuations.