Challenges?

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?

Add the financing challenges and that you existing structure likely will become rent controlled.  

@Akshay Bhaskaran, off market deals, by nature are not marketed, so as others noted you have to work to find them.  

Quote from @Michell Chase Chase: I registered my LLC in Wyoming and was not told anything to that nature..but my investment property is in NY so I also have to register my WY LLC as a foreign entity LLC in NY as I will be generating income in that state...

Quick question: What’s been your biggest challenge when managing smaller multifamily properties?

The seller seeing the interest in their land, naturally did not want to budge on the price.

Challenges?

Without knowing the nature of your partnerships it’s tough to say specifically.

I'm just not seeing any strategy that can offset to any significant degree, the depreciating nature of either asset.