Assuming you could make a 5% return on that money in another investment, it's costing you $129 a month to have your money parked there, while your monthly principal reduction is a little over $200.Therefore, at $1000 a month rent, you're basically living free in the other unit.

from what we can tell there's no junior assoc waiting in the wings), and then there are three apts upstairs (2 br, 2br, 1br), all occupied.Trying to weight what seems to be one of the more favorable returns on a place that we've encountered recently, with the risk of potentially losing the main tenant in a few years and filling that space.Any thoughts?

I would weight out your options and connect with an agent that is an investor and knows his laws.

Sometimes, however, it is not that clear, and you may want to use a decision weighted matrix.

Although, if you wanted to use my referral link (which is free) to sign up for the card which would kick me back a few points (at no reduction of your bonus points earned), I would happily agree.  ;-)Either way, sounds like you have a lot of rewards and free travel coming your way.  

@Scott Goulet - If you have a banker on your side that wants to see you grow and has a track record with you via your other properties, they are worth their weight in gold in terms of helping you find the best path forward.    

Also, if you're getting a loan on the deal the lenders might look at this from a multifamily perspective and not give as much weight to the residential ARV and they may look  at overall Net Operating Income from the entire deal and apply a cap rate to come up with a value.

This reduction is not just the lack of management fee, but no leasing fees, lower repair expenses and near 0% vacancy.

We're seeing longer DOM, and a few price reductions - but it really depends on the property.

Realtors in the market also helped us prove and evaluate the as is condition to the state,that ultimately helped us get a massive price reduction and get this deal closed.