A point is one percent (1%, 0.01) of the amount you are borrowing.

I have several close friends who specialize in audit representation so especially in the wheelhouse of real estate audits I get a good amount of feedback on trends. 

That would be a separate mortgage and not what amounts to a second loan on your personal residence, which if you have spouses, they might not be that into. 

It would be very difficult for me to keep track of dollar amounts but as %s I was able to have ChatGPT adjust those values as needed... particularly as it relates to items that were calculated based on rent.I hear what you're saying though. 

None really reduce the amount of money they have to come up with, but if they are broke as a joke do you really want them as your tenants?

At this point since it's after the fact while not totally correct; you may explore adding the missed asset/basis amount as a selling cost to just reduce your gain. 

I admire them for their moxie in starting a company, but the fact is that investors who buy from them sight unseen are taking a massive, massive risk.  

Depending on state law the buyer will have a certain amount of time to remedy this violation of covenants. 

I have been trying to keep an open mind while but I see a good amount of value in long-term rentals of SFH and multi family units.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Section 8: Rents are too high for the program and cash paying tenants are better overall.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsSection 8: Rents are usually too high for the program.Class C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.