Either way, this wasn't handled properly a year ago.

So find the value of their investment, and value of management, and value of finding the deal, etc and break it down into percentage of value to find proper shares, or if they want total passive, just borrow off them at a reasonable interest with balloon clause and keep the deal myself.

Yes I would definitely sell and re-invest in a cash flow positive property, and make sure you understand how to properly calculate cash flow and even add some margins in there for higher interest rates/lower rent.

Is this considered proper?

In my experience, dented doors seem to have trouble over time because they do not open and close properly.

@Sami Gren If there's a proper area in their unit to add one and if they're the ones that will be paying the added utility bill, I would allow it.

Keep all your paperwork and share with your tax professional to allocate properly.

Then the step after that is to find a lender who is proficient in BRRRR and have a real conversation with someone who can guide you on the proper next steps and costs/risk should you decide to make an offer on the property.

Proper, CBIZ and Foremost ate the big players.I found Foremost to be the best bang for the buck.

It is unfortunate that we have to deal with these types of issues as investors from time to time, but if ever there was a clear enough case of different appraisers giving different appraisals and some not even bothering to do the job properly, this is one.