Typically they will outline you the floor and ceiling on that rate to give you an idea that if rates drop, what's the min on it.

Let's say the PM is responsible for snow removal and this service is clearly outlined in the management contract, but the PM fails to clear the snow and a tenant slips and hurts themselves.

Here's a link to the Fannie site that outlines the occupancy verification procedures:https://singlefamily.fanniemae.com/media/26241/displayAnd, keep this in mind: it's one thing to not meet the 12 month occupancy requirement - life happens.

What you want is doable, outlining your contract agreement in a non-binding LOI with the owner, for instance, referencing what you speak of, rent abatement, TI allowances if needed, due diligence time frame, and general lease terms needed.

Importantly, the LOI isn't legally binding but serves as a preliminary document outlining your interest, potential purchase price, and contingencies, allowing for negotiation before finalizing a purchase agreement.

My opinion is that to better serve yourself as an investor seeking to get your appraisal to come in at value, you should follow the steps outlined in this thread.

However, the higher your risks too (remember the two main risks I outlined above?)!

It depends on the deal, but what we did was give the PMP (Private Money Partner) 50% equity in the property to fund the entire entry fee.Thats not necessarily a rule of thumb.This to me is a sliding scale based on the Cash on Cash return you can expect.Further , we offered our partner 75% of the cash flow until they are paid back in full, then the cash flow return drops down to 50%.All liabilities would also be split 50% with this partner.We called the company we use , who establishes our LLCs, opened an LLC, wrote up an operating agreement and a JV agreement that outlined all of our responsibilities for the asset.

Hi DavidDo you have anything in your lease or state statutes that outline that happens when the property becomes uninhabitable?

The way to do a rent raise will be covered in your contract with the housing authority or may even be outlined on their website.