Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

While I agree the rent by the room strategy can be great if you know how to manage it well, from a lending perspective, a lot of 30 year DSCR note buyers won't allow properties with individual room leases, so it could make refinancing more challenging. 

@Sufyan Minhasgoing to depend on the rules in individual buildings

Certain expenses are all lumped together for the sake of the P&L like insurance and taxes and others like repairs and maintenance can be viewed collectively or by individual property.

The goal is to expand my network with likeminded individuals in the same market.   

When they get that commission check That's the benefit of working within a group that is QB'd by a single individual cause any new member gets the benefits already mined by the group.Financing Options: What types of loans or funding sources work best when scaling quickly?

The net interest is the sum of the interest incurred in each individual month, so if we can demonstrate that you have no net savings in month 1, it follows that you'll never see a net savings in future months. 

They are threatening to sue to try and get something from you but most likely will not go through with it as you have no written contract in place and in california there is also no non-compete agreements.

Have you tried contacting the main office or different individuals in the company? 

Gray area interpretation up to individual courts which have rendered seemingly contradictory decisions.