I own an investment condo, my expenses went up and my tenant just left, and I'm considering selling it with seller financing but want to learn a lot more about it.

I have two questions:1) What is the average rehab cost/sqft  (cosmetic, light rehab, and full gut) in the Charlotte market?

Id be cognizant of overall average days though!

I understand for tax purposes that I can only take two-thirds of the expenses related to the house to offset the rental income.

It is all based on numbers: average tax increases, average insurance increases. 

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.

We essentially break even on the deal right now after all expenses.

Whichever strategy that you choose, run your numbers, and definitely consider all the other benefits of owning real estate i.e. appreciation, loan pay-down, potential housing expense decrease and/or cash flow. 

So with this he would have his 29k plus another 15k from the cash flow  for a total of 44k  making him have around an 8.75% per year return on average for his money.   

Nothing is different with Airbnb other than those hosting avail privately owned real estate for commercial purposes and only here its at the hosts’ personal expense to acquire the license and pay the tax.