@Ben Magee, In my state (PA) a tenant may break a lease WITH NO PENALTY if a unit is uninhabitable for an extended period and the landlord has been unable/unwilling to correct it.

There was a brief period a couple of years ago where demand was out-pacing supply by a large margin, but that has calmed down.

Due on the ___ of every month with a grace period and then start charging late fees?

After the seasoning period, buy another fourplex and move into it while renting out your old apartment.

Ultimately, it depends on what’s going on in your local market and how involved you want to be in managing it.A firend of mine who was managing a similar property in Scottsdale ran into some issues during a vacancy period.

Most peoples biggest "out" is if they are unable to get approved for the loan than they may be able to backout without penalty depending on the loan period written in the contract.Like everyone else said, it will really depend on the contract wording.

However, if you’re unsure about future property values due to the unique nature of the property, this could pose more risk.What You May Not Be Considering:Financing Flexibility: Using a HELOC for repairs is a solid plan, but make sure the loan terms are favorable and the rates are manageable over time, especially with interest rates fluctuating.Vacancy and Maintenance Costs: Once all units are rented, factor in potential vacancy periods and ongoing maintenance costs, especially with multiple units.In conclusion, while the repairs are a big expense, the strong rental income potential suggests it could be a good deal if you manage the rehab costs well.

Does the use of the property as a personal residence by person A and the limited rental period affect the capital gains in any way?

It would just take longer without guidance.My experience is that someone has to actually apply what they are taught “consistently for a long period of time” in order to become successful, The mentor is there to help them along that path.

After that period, I definitely did not want to get into the cleaning business.