The government created inflation through excessive, wasteful spending.

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.

The tenant is paying down the mortgage, there's just less excess cash now than if I refinanced.

Admittedly, the cost of a commercial appraisal will be higher and dependent on the number of units, but I would argue that compared to the grossly excessive fees charged by commercial lenders, the difference in appraisal cost is relatively insignificant.  

Therefore that excess return above 10% therefore gets distributed to the Class B investors which will increase their IRR from the 14% overall LP return to say 15%.So most times having Class A shares, helps Class B investors.Another way to think of it is Class A and B offer investors options.

The economy has already lost 5-10 million workers or 3-6% of the labor force to mass early retirement, excess deaths, excessive disability, and no immigration for 1.5 years. 

He was specifically thinking in terms of flipping.My general (albiet inexperienced) impression is that if I'm looking to rent it and can do so, as long as I can get rents in excess of any monthly outlays of these loans, pre or post financing, then I'm staying ahead potentially indefinitely--this assuming I refinance into a single set rate.

I would also avoid excess leverage and keep good cash reserves.  

Although, I do have access to credit in excess of what I would need to use to aquire the property, should any emergency arise.The houses this company offers generally sell in the 40-60k range, so my plan was to pull about 10-15k from my credit cards (whatever 20% of the purchase price would be) and fund the remainder with a hard money loan.

@Umair Khalid does your lease state that the tenant is responsible for excess water bills due to unreported leaks?