The only reason to lower current rent amount is if rents are dropping in your area, and then you should likely analyze and adjust if tenant can easily find something similar for less.

You are setting up yourself to risk.

Second set of eyes won’t hurt. 

@Rena Figures if you only want to put down 3.5% down payment, then I strongly advise setting up an LLC and incorporating 4-5 other like minded individuals that have the same goal. 

If you are buying a $50,000 NOI in CA at a market set cap rate of 6% then the market is paying $833,333.  

Would we owe less if we set up an LLC (s corp?)

Send 1,000 mailers: 2% engage = 20.   40% turn into leads = 8.   75% set appointments = 6.   85% "sit" = 5.   60% are viable potentials and submit offer = 3.    

And of course, I keep an eye on the last five years to get a more recent take.Once you've got your sights set on the perfect market, it's time to zoom in and find the hidden gems.

The  local power company and Energy buyer contracts are set, land-lease contracts are set, and the solar equipment are all in place.

Additionally, they've agreed to pay $200 more per month than our current tenant, which is an offer that aligns well with our financial objectives, even as we plan to adjust the rent upon renewal for the existing tenants.This MTM arrangement also perfectly aligns with our plans to make improvements to the property.