there you go. the problem is appraisal. comparable sales, and your approach to building an ADU against the recommendation of your market. super beginner strategy it's popular in ohio as well but just not worth the investment. 

I’ll certainly take this as a lesson to leave no detail overlooked and to approach every aspect of my agreements with care.

While I appreciate that & don't want to push them out, they are well below market rate & the unit is a disgusting mess, approaching hoarder status.

Since I have a long-term interest in getting into hotel investing, this feels like a natural stepping stone, but I want to approach it the right way.I feel like this is such a great opportunity, especially with it being off market.

Here’s the approach I’d take, blending strategy and action: 1.

This approach will help preserve your operating capital.

I want to refi and pull some of that equity out ($200-$250k) so I can keep growing my portfolio but I'm not sure how to approach it as it would obliterate the cash flow I currently have, and in the current market I won't be able to make up for it with additional properties as they would also have minimal cash flow.

Best approach is to have your "team" set, before going out to secure properties. 

I’d love to hear more about how you approach finding these under-$2M properties and what strategies you’re implementing for operations optimization.

If these type of damages occur in the future, I would recommend holding the tenants deposit, or if there is a claim to be made through the insurance you sell them you could approach that avenue.