With a turnkey, you have almost no exit strategy short term that won't cause you to take a loss on the property.

This just doesn't seem feasible especially for investors who are flipping in this city.

Kyle Mccaw Unfortunately in larger buildings it's usually not feasible to separate utilities.

Splitting profits and losses 50/50.

You didn't mention the deductible or what level of Liability coverage was quoted nor if you added on coverage for Loss of Rent, Sewer & Drain backup, or Landlord Personal Property.

Hi All,The situation is this, I have done some digging already and found that the note debtor that I'm in contact with has more assets than they are disclosing when asked to produce profit and loss, w2, tax filing etc.  

You need to see a Profit & Loss statement from his bookkeeper's accounting software or you'll have to build it yourself.

Even if you file and show a large loss, most lenders should be able to use the 75% rule with signed leases.

You can use losses from depreciation to counteract other other real estate gains across your portfolio.Would your house make 20%+ more money if you rented it room by room on 6-12 month leases?

They are backing out on a legally binding contract, causing damage to your business, and it's reasonable for you to recoup a portion of the loss.