This may be a simple answer and you just refi with the existing lender and have them waive the penalty or you just pay it and include that cost in your modeling assumptions.

I suggest you do any maintenance or upgrades while the existing tenant is in place.

As an architect I love the idea of building new but if the cost of building new is more than buying and rehabbing an existing building it may not make you any money.

Use the loan that I just used to buy my first duplex in MN: Portfolio Conventional Loan, 3% Down Payment, No Mortgage Insurance (yes this loan really exists).

@Matthew JarvisThere is an existing thread on this subject which I started yesterday.  

Use the loan that I just used to buy my first duplex: Portfolio Conventional Loan, 3% Down Payment, No Mortgage Insurance (yes this loan really exists).

Have you spoken, with the current Management Company, to ascertain if there is any existing maintenance that have been deferred such as roof replacement, window replacement, major electrical and plumbing systems, etc.?

The lending can be easier on this, too.Find an existing multi-family lot that is large enough to work with.

However, Reg D compliance actually protects the issuer as it is a safe harbor, the issuer utilizing a non safe harbor private placement exemption subjects his offering to interpretation by security regulatory agencies.All this is of little concern to the passive participant as long as he obtains full disclosureWhat is of more concern is the licensing, if any, needed to broker, manage, and service notes.Purchase of existing notes, whether residentential or commercial requires no license.

Too many meetings is the bane of my existence, ha.