Push the 750 immediately to 725 and move the other up to the same over the next 8-12 months.Make sure you institute a annual rent increase going forward.

This tenant obviously considers this unit home, so unless there are concerns with them, see if you can keep them.With our current tenants, if they have stayed a year or longer and have been good tenants, we increase rent annually to 50% of the gap between current and market rent.  

Account Closed, thanks for the breakdown from a new to be investor. 

I am just trying to get an idea of what the possible outcomes may be taking into account the cost of the repairs may be more than the market value of the property...do they just send us a check for the repairs, do they send us a check for the market value, do they send us a check for the replacement cost etc etc?

But, you should speak to an accountant first.

Do you recommend that I set up the account first and then start finding a deal or have a property in mind first and then set up the account?

Did you encounter any opposition or criticism of their services from an attorney or accountant?

My plan was to open an account with the bank in the next week, and perhaps approach them after the 3-6 month mark (seasoning period) and talk to them about refinancing into a long-term loan.  

@Jake Johnston I think what @Jd Martin is eluding to is that with the construction (or maybe you are referring to a purchase/renovation loan) loan, the money for the repairs is held in an escrow account and you have to jump through a bunch a red tape just to get draws. 

Hello Jennifer,The professional you'll need to talk to is an accountant.