I hope you learn from this and hire a quality PM for the next time.I would try two things, simultaneously:1.

5K rent seems cheap for the area so I would continue with that.

Originally posted by @Daniel Suarez:@Bjorn Ahlblad Good point, although I'm failing to see what the potential consequences could be, maybe I'm not thinking beyond what i saw. 1.

One tenant had a lease that has since expired but that lease wasn't triple net and the other tenant never had a lease because it is the family business but the lease is triple net.

In the last year for Knox county specifically the median sale price is up 9.92% and the whole MLS is up 7.14% year over year.After beginning to recover in July and August, home sales throughout the East Tennessee region slowed up again in September which is somewhat expected as schools get back into swing.Mortgage rates remained below 7% for the entirety of September, for the fourth month in a row.

., just call the county/city and get the skinny.

I question how much value above costs can be achieved.An ideal BRRRR has zero costs and has positive cash flow after the refi to extract the value add.  

In my experience, you can purchase the existing home and the encroachment is grandfathered in, meaning the vacant lot owner can't force you to move it.

If you can't find it call the housing authority and ask them what the payment standards are for the bedroom count you are looking for.

The limits are not high at first, but they can build with good utilization and payment history.