Your property, long term will not cash flow leaving you only appreciation as a speculative investment in the end.

For primary residence purchase/rehab projects, the 203k is considered one of the best programs for this purpose.Here are some contrasts between the two approaches would be: - Construction to perm loans involve a certain degree of speculation (in the majority of cases, the perm rate is not locked until the work is complete)---203K offers one rate fixed for the term of the loan

This is clearly speculation but an example of how a manager can screw you over.

This project sounds very speculative.  

Perhaps as a speculative bet on future appreciation.Lakewood and Edgewater are better than those areas, but still awful for finding rentals.

In 2-3 years Florida will be a much better value than it is right now as the speculators there now sell out.

In the absense of clarification, I will speculate:1.

The speculators are gone now.

While I know this is limited information, and I am not asking anyone to speculate on the deal specifics (not that I gave you much to speculate on), we are curious to get the opinion of others who have dealt with (or stayed away from) properties of this size with regulated rents.

Neither is necessarily right or wrong, you have to do what's right for you, but i have to say I believe there are 2 different kinds of debt - consumption debt which is bad (e.g. student loans and credit cards), which Kiyosaki calls "doo dads" and what I consider "good debt", by using other peoples money (such as a bank) to purchase INCOME PRODUCING ASSETS (NOT speculative ones).