I wound up going in a different direction and did not pursue the issue.Bill

We do know that water will keep going up.

But will you get a stepped up basis or owe 100% of the capital gains?

The really attractive part of the loan is the idea of not having to put down cash as a downpayment (even though I do have cash available since I was initially anticipating going with a Conventional 30-year loan).Is it fine to assume the risk of interest rates going up for the sake of putting 0% down?

STR a suboptimal option in this market due to restrictive ordinances.Purchase price: $1,260,000 with 11% down @6.75% fixed 30 yrTotal Rehab costs (labor + materials) thus far: -$70,390Cashflow to date (NOT including Rehab Costs above): -$60,237Projected Cashflow: 3.1% with 3 LTR tenants Wanted the group’s expertise on options as I am considering parting ways with this property given the number of leaks that have come up in this relatively young property.1) In 2025, 1031 into another (potentially more units) multifamily at least 20 years old.2) Investigate leaks/Stabilize and proceed with original plan as LTR and accept uncertainty related to potential future leaks.3) Proceed as MTR (hospitals and NYC nearby) so that can intervene on issues during vacancy periods.

I have my team on the ground when it comes to real estate agent, cleaner or other critical team members to make the property up and running.

@Kevin Sobilo I have money saved up and it is currently in an investment account, and my spouse earns monthly which I don't want to use for rental investments since the whole of that goes in for running the family. i am budgeting it based on the returns i get from the investments i have in place. 

Both my business partner and I put in 15k each to cover taxes and any other expenses that might come up.

I'm considering upping my aggressiveness on remediating this issue with something that will cover up the color of the mold so it will indicate better remediation efforts to future potential buyers. 

Like I said everything has been great up until this point - but I just can't see buying so far under value.