By the sounds of it you could do a 5 year lease and offer 10-12 per foot in ti should cover the renovation.  

These states are:- Florida- Nevada- South Dakota- Washington - WyomingThere was a link someone shared about which states had favorable tax treatments for real estate investing: https://realheartland.wordpress.com/2014/03/10/sta...Regarding taxes:1099-int is taxed at your marginal tax rate so if you're high income this can be a lot.K-1s allow for both passive gains and loses (including depreciation).

. :) Pragmatically, from your perspective these clients are actually just really picky first-time homebuyers, always keep that in mind.For well established clients: A common thing I see among agents that list a lot of 2-4 unit properties is a suit in tie, and this is in the SF Bay Area where generally no one wears suits.

Hey @Shelton Hale  there are some great people on here that can help with answering any question you have... also look in ti the local REIA . 

The reason is a tenant might do shoddy work on the cheap side just to open and then try to pocket the difference in TI if you just gave them the money.When my clients buy strip centers you walk the units to see the level of interior finish quality.What I mean by higher cap is actually lower cap.

If you are not into maximum leverage I would sell and move on to the next one.There is no point in tying up dead equity in a property since its investment value will  kill your cash flow.

Thanks everyone for the input.We're certainly going to forego lending to them, and I told them already that the money in tied up in stocks and making more than 4%, they understand.  

No sense in tying yourself to the property longer than needed.http://www.2-10.com/

@Matt M. and @Bill S.Both your replies are in tie, comforting and what i wanted to hear, thanks for taking the time. 

Int is low and so are payments, I couldn't be more thrilled.