you can go back and update the post and make additional comments, statements etc. 

If you don't currently, I would require renters insurance going forward from all tenants and make sure they name you as an additionally insured party.If they break up, she’s still responsible for the lease, just like she is now.

I am aware of additional payments for an FHA such as MIP, but i am completely fine with that.

its a far greater % of your income.

While I've typically focused on single-family homes, my journey into real estate began with buying my first house using a VA loan and house hacking it, then acquiring additional properties from there.

The dilemma i have is that I can’t decide if it makes more sense to embrace the c class identity this property gives the impression of, or put a lot more into the renovation, get better quality tenants and convert it to the B class property that the building (and the area) should/could be. 90% occupied, the yearly rental income is around 600k with 420k NOI. 

If ordinary income, in NC that will be a tax rate of about 43% between federal and state taxes.

Below are the key data points:- Gross Rental Income: $118K (I received the rent roll list from agent)- Effective Gross Income: $112K (I'm assuming a 5% vacancy factor)- NOI: $56K (I'm assuming 50% Operating Expenses - inclusive of 10% property mgmt costs, repairs & maintenance and CapEx reserves)- Recommended PP: $623K (Market CAP rate is at ~8%; I used 9% because I want the Cash on Cash return to be 10%+ with a 30% DP at 7.2% interest rate and 30 yrs term)- The asking price is $1.25M.

740k, 2000tax, 2400 Hoa, ~3500 insurance we’d need to furnish the house and do additions to the back yard, I’d say 30k more.

You would have to contact the current housing committee and fill out a rent adjustment form, if approved the portion between the housing committee and the tenant depends on what the tenants income and ability to pay and all of that will be listed on the confirmation