That could be $1K non-refundable fee PLUS $30/mo.2)  Use the lease as leverage, but likely don't evict. 

The last thing I want to think about when deciding whether to terminate a lease on bad terms or evict a non-payer is whether or not they are going to pull into my driveway when I'm not home and my kids are playing in the yard.This is a business that usually has positive personal interactions, but the potential for disagreements and hurt feelings cannot be ignored. 

@Mohamed Nagoor , There is no capital gain treatment for flipping the house.

If the rental is treated as a separate property from the primary residence, would the tax treatment be different than previously described?

You better be ready for non-pays up to 100% of the portfolio, evictions for months on end, all units being stripped clean and made new, and as always getting them rented. 

Is it common to see cess pools out there still and are there any companies that have alternative treatment units in the area?

Now, if the 5% is non-refundable, that would be a red flag for me, and I would walk.

@Adebowale AsayaWhen you mean commercial property - do you mean a non-residential building?

A relative found out recently that the lawyer who recorded a lien for them put his law office as the notification address, not their home address.  10 years later when the guy stopped paying, they found out from the records' office that the home foreclosed and they never received notice because it went to the lawyer's office, now non-existent, not their home. 

Here are my most recent 3 commercial loans, all closed Feb 2018.1. 3/1 hybrid arm 4.19%, 3 years Io, 30 year final, 3-2-1 pre pay, no origination, 62 ltv , non recourse2. 5/1 hybrid arm 4.00% no IO, 30 year final. 4-3-2-1 pre pay, no origination, 70 ltv, recourse3.