The biggest reason we have not offered a fund, is the competitive nature of the market we are in doesn’t allow us to purchase a lot of assets, unless we are aggressive.

Thank you all in advance for those “lessons learned.”David - I never purchase the land until I get all of the entitlements and permits and hi Ty the purchase price of the land to the density granted so if you get less than you’re looking for you can reduce the purchase price.Also I begin with the end game in mind and make sure that I have Builders lined up ready to take down the lights when I’m finished so I know what my profit is in advance.If I’m building the houses and developing the land I make sure the market can absorb the inventory at the price point I am projecting and I work everything backwards from there. 

I’d love to do a light rehab or purchase 1% deals I want to buy anything from 2-12 units.

Two dishwashers, some lights, screen enclosures, some inoperable cooktop units etcMy Estimates (note that the market CAP is 7-8%):- WORST case scenario for rents ($1225), occupancy rate (88%) and high repair costs ($75K): 2.3% CoCr and 5.1% CAP - BEST case scenario for rents ($1300), occupancy rate (95%) and low repair costs ($20K): 7.6% CoCr and 6.6% CAP rateEven though I strongly expect the numbers to look closer to the best case scenario above, considering my out of pocket expenses are going up with all of the repairs and also that the stock market is tanking right now and money is becoming scarce, I'm not so sure about this deal.

Naturally, if you are looking at a smaller building (residential or 5-10 unit) you will need less time than if you are examining a 50-unit building to cover both the physical building and, examine leases, gather estoppels, etc.Environmental Assessments (EAs) are a fairly common ask of lenders and, at times, insurance providers when transacting commercial properties.  

Personally, I believe that the value in these homes does not lie in the cash flow (although positive NOI is relatively easily accesible given the nature of these homes in distress), rather the appreciation value.

After that we did a full gut job rehab on the condemned unit including new cabinets, counter tops, appliances, shower, vanity, toilet, light fixtures, plumbing fixtures, refinished the hardwood and put LVP in bathroom/kitchen and finished it up with a fresh coat of paint.

We need to be turned the lights onto these vultures, The Plaintive Lawyers.

There are three different stages that you will find properties in right now - needing a lot of work ( competing with the local flippers) light work ( hot hot market in most of DFW) and turn key ( competing with the FTHB) Are you looking to house hack ?

My concern is addressing the scenario when I need someone to move out or I need to be compensated for property damage, while still maintaining the living agreement format and binding nature of a lease.