Not sure what rent control is in place where you are, but you can also use the opportunity to get the rent up to market value.

Let's say your seller bought the condo for $75,000 back in 1993, and today it's worth $300,000 - completely fictitious numbers - but go with it...Where I live (in Florida) there is a cap on how much the government can raise your property taxes a year... it's like 3.5% a year of the assessed value.  

There's potential value to separating the two from each other. 5.

These assessments aren't just disappearing into thin air, they will be used for maintenance that will help stabilize/increase the value of her property.Your SFH requires maintenance and you should have reserves for that.

If you can't get cash out, consider the likelihood of your market appreciating further/bouncing back from where the market currently is, as well as whether you can do any value add to your properties to boost their values.

They don't know what they're doing and likely won't do the job right, that protocol is critical for understanding how, when, and what should be done.I hope someone out there finds some value in this post!

Yep, good luck with that right now... since they raised the min loan and min house value it cut off many of my exit strategies, and is a real challenge for attempting BRRRR in many of our Ohio cities. 

If you are looking at value-add assets, quickly look for market rents in the submarket and current rents, if current rents are within $100 of market rents, there is not enough juice in the deal to make it worth while3.

You could give them the option to re-up the lease with the $50 increase and lock the rate in for a year or go month-to-month at market value which would be a $200 increase.

Please be careful, at higher amounts leveraged, the carrying costs/time value of money can eat you alive if you have any hiccups in your project.