Originally posted by @Max Matrin:This type of loan is generally available to individuals who own a property that has been rented out to blue chip companies, multinational companies and public sector companies. it does not matter who the tenant is. what matters is the individual at the bank (generally some sort of VP) who you talk to. it has to be a business person not a pencil pusher locked up in his cozy 9-5 safe corporate box.

 $198k ARV (Always use low ARV to be safe)$136.8k 70% rule (provides starting point to ensure profit, closing costs, etc)$-44k high end of repair cost$94.6k target purchase price for a flip.Some will disagree and be more aggressive but things always go wrong on a flip.  

I would guess many have been on month to month for some time anyway, so you probably would not get an immediate exodus (but you could even approach them about it individually over time to be safe; for example, just talk to one in the triplex, try and sign them up, and if not using your the correct version of your state's notice to end month to month; move on to next person and sign them up for one year or give notice; space it out so you don't have many vacancies.)...

You may be safe though... if they're generally good people who take care of their home like you say, they will not tolerate an animal that will destroy their living space.

Don't know Michigan statutes, however if you're concerned that guy will continue to gripe, the ultra-safe, conservative approach is to hire a 3rd party to photograph and inventory each room's contents and have them remove and store off site.

Touring and producing shows with Oompa Loompas, 7-foot glamazons, life-sized bunny rabbits and a whole freakshow of fun... saving businesses from the 2008 bubble burst, and turning the dilapidated remains of Downtown Vegas/Fremont Street into a bright, safe, enjoyable, entertainment powerhouse in the Entertainment Capital of the World.

@John Zoulis I wouldn't trust 100/sf, you might ask a local builder to determine real and accurate prices, 150 and 200/sf is a safe number, for analysis, use those numbers, many can do it at 150, but your GC choices will be limited, use 200/sf just in case you run into problems or not have enough experience.

In my opinion, it would make more sense for him to sell for cash (the house will become less and less valuable over time) and if he got better he could rent using the money rather than returning to a house that needs a ton of work just to be safe to live in again. 

@Jared Saunders, I think you are pretty safe with your current reserves. 

Make sure all common areas (entrances and Egress) are safe and free of debris. 3.)