More interested in more of an assessment and guidance related to real estate.

Here are the Fannie Mae guidelines for legally non-conforming properties:If the Property's characteristics are legally non-conforming, you must:ensure the Borrower executes the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275);confirm whether, if fully or partially destroyed, the Property's Improvements can be fully rebuilt to the pre-casualty condition per current laws, zoning requirements, and building codes; and if the Property’s Improvements cannot be fully rebuilt to the pre-casualty condition, evaluate if the as-rebuilt Property will support the Mortgage Loan at the current Tier, and document your analysis in the Transaction Approval Memo.To assess the Borrower's ability to rebuild Improvements on a non-conforming Property to a level that will support the Mortgage Loan at the current Tier, you should consider: conducting a threshold analysis to determine the resulting actual amortizing DSCR if the reconstructed Improvements cannot be rebuilt as-is per current law; the likelihood of a casualty event (e.g., wind, earthquake, fire, flood, mine subsidence, etc.); the percentage of damage to the Improvements at which the Property’s jurisdiction will require the Property be rebuilt to current zoning and land use requirements (i.e., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.

Hi Edgar, in your specific case, the thing that scares most is that is a very old building with HOA and risk on future special assessment. 

3) assessment fees and costs?

Here’s how they impact my REI situation:Quick Evaluation: They provide a quick way to assess whether a property is worth further consideration.

Also is there is a way to defer Capital gains.Market Conditions: Look into local rental market trends and economic outlook to decide if things might improve or get worse.Management Burden: Assess if managing these properties is too much work and if it’s affecting your cash flow.Alternatives: Consider refinancing to reduce costs or a 1031 exchange to defer taxes and keep investing.Consult with a financial advisor for personalized advice for sure.

They should be able to give you an honest assessment to see if you are priced right.

The significant appreciation and consistent cash flow are a reflection of the potential that exists when you carefully assess opportunities and execute with diligence.If you’re curious about how to replicate this success or want to discuss real estate strategies, I’m more than happy to share insights and experiences.

Usually that is because the assessed owner died, or sold the property, or it was foreclosed on.

Ultimately the true cost of acquisition and investment will need to be disclosed and assessed.