Ensure the sublease is explicitly permitted in a written agreement with your friend and aligns with local STR laws.

1031 arms length could be risky?

In north/central NJ, 95% of serious arms-length real estate deals (i.e. not wholesales or  family/friend), attorneys will be assisting.

Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.3.

First, I’d check the sale documents and listing details to see if the property was explicitly marketed as a triplex.

Since you just purchased the property, in an arms-length transaction, you have a very good argument that the purchase price is the market value.

Jaedon, that’s a question I’ve seen stir up a lot of debate, especially these days when the cost of capital and property prices can feel like they’re arm-wrestling over who goes higher.

This effectively means tenants can pay cash if the lease doesn't explicitly state otherwise.

And you said it’s an ARM?  

To avoid these pitfalls, investors must arm themselves with knowledge and maintain ethical standards throughout their prospecting efforts.