Hey @Kevin Rominesyes that makes sense, I've been comparing and running numbers for most of the day and from my basic understanding you are correct.I guess my concerns are now that the current mortgage is on a variable rate and the new tenant has the option to buy so nothing is set in stone and I could end up with the property again in three years.

Less cost and less hassle for you and will make projecting monthly cash flow easier since you shouldn't have as many variable costs. 

Hi Mike, I think one of the biggest variables to consider as far as the investment thesis here are the cash flows in the near term.

20yr variable rate with 20% down 2 yr balloon which we extended to do the renovation at a better time for us.

@Mason Barnard here is some advice on C/D properties like this:Maintenance - estimate no less then 10% and this can be a variable depending on how CHA heavy the building is  Vacancy- you might be able to fill turnover quick but the turnover costs to get the property back into rent ready shape are typically twice as high.  

There are a lot of variables left off for anyone to give you good advice.

So naturally you have to consider HOA and property tax variables as well.

They are scheduled to be coming online in two years, but with all the variables (including rainfall if I understand correctly) I'm not holding my breath.Thanks David, I should have noted the development location, as I'm guessing the high cost of land in California (especially with multifamily zoning) is a major variable, though I'll defer to the experts here.

Too many variables, cross that if it happens.Lease should have a break clause.

Too many variables.