And as mentioned above, if the lender you are speaking with doesn't know what that is...then you need to go to a different lender.  

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

I would be surprised if the city *doesn't* require the walls to be opened.

It doesn't mean they have a case or that they will go through with it.

As far as I know, a 1031 Exchange doesn’t allow you to use the proceeds for improvements on a property you already own.

This doesn't seem like a good marketing strategy to me though. 

@Jay Fayz for SFR (1-4 family) Classifications are mostly opinion-based.Not aware of anyone tracking eviction rates, except Evictions Lab nonprofit that doesn't like landlords.Here's some info that might helpt:---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Some gurus tell practicioners of sub-to to hide transaction from the lender by saying the lender doesn't care as long as the payments are being made.

Properly maintains/doesn't damage the property.3.

Leverage - someone mentioned Real Estate doesn't beat stock market returns and while that might be true in absolute terms, it's definitely beat the market when you consider leverage.