The reason why I do criminal background checks or credit checks is strictly to reduce my risk and nothing to do with idealogy - one way or the other.

Also, depending on the insurer, there may be a reduced coverage amount for a vacant property and you may have to get a rider if you want cover for vandelism.

You mentioned "not being able to sleep at night" due to anxiety from borrowed money.

Are we reduced to the very rare 100% seller financing deal?

After seeing my sticker shock they kindly reduced my fee to $250 and suggested i convert to a single member llc whereby eliminating the need to file a return for llc and would just need to file personal taxes.

Then, other tenant threatened to move out unless a rent being reduced to $325.

Shari, if your aim is to reduce liability, you may want to consider putting your properties in an LLC or multiple LLC's.

Its the originating lender who may have an overlay which precludes that type of structure or reduces the CLTV to 90% or less depending on occupancy and borrower qualification.

Here are my estimated numbers:$5,000 capital improvement$50/mth or $600/year in additional cashflow$50/mth or $600/year in reduced gas billCash-on-cash return of 24% ($1200/$5000) Appreciation based on 8% cap rate is an additional $15kMy question is this: Why is no one making this upgrade/conversion?

Your local knowledge and resources should provide an opportunity to disposition said asset that reduces the expenses and time to recover or collect.Understand also, that banks are not the only holders of loans.