If there was extra land I could parcel out or demo the building and construct a higher density or sell the land to a developer for a fat profit then the building breaking even wouldn't bother me as much.Because the value wouldn't be tied to just the building bit more so the land that it sits on.Also if the rents were under market and you had deferred maintenance that would come in as far as value plays.I don't just look at a property from an income stand point.There are many angles to look at it from where it might make sense.

If these is a clause saying houses can't be rented, he might have a leg to stand on.Given you have $1000 on the line, I think it would be worthwhile to spend $200 for an hour of a lawyer's time.If there is no legal basis for this suit, then this is, again IMHO, a "taking".

I don't know anybody I can trust to work by the hour for me without me standing there with them-which would defeat the purpose.I can flip this thing for 6000 now and try to find another deal while I look on weekends and evenings competing against full time investors (its taken me a year to find this one), or I can maximize this deal and make 3600 a year (using 50% rule) on it every year forever or until I decide to flip it for 6000....or more.The fact that there is no mortgage is a huge plus for me to hold the property.

They can claim they can't read or didn't read it but since when did illiteracy become legal standing?

There are a number of places to place a commercial loan if your approach s right.Financially where will you stand in the end time/money/effort not equity.

Marvin,You may have some legal standing against the property management company given how vague the terms and conditions of the repair clause is.

She communicated with us once then just left, She left over two pick up trucks worth of crap furniture, and made zero attempts to clean the place leaving standing dog urine on the new tile floor and rain filled buckets of dog feces in the yards.

There clearly are ways to get tenants out but I stand by the fact that it is a difficult and long process as in the case I linked. 

Even if the area is in high demand, the problem is that you have a competition and what matters is where the competition stands, not how great you are.There is an old joke about two hunters been chased by a bear.

Stands for Money, Utilities, Legal, Tenants and Investment.