Would it be reasonable to expect to be able to raise rent with remodeling the units or is 400-475 pretty close to market rate for the area the multifamily is in?

Are you trying to raise the rent or get him out?

Additionally, most of them don't have the funds to actually market on their own so they use other people's leads.

@Tony MaticIf the funds are under the umbrella of a retirement plan, the loan will need to be non-recourse.  

Do we accept putting additional cash into our first deal or do we keep our eyes open for another deal.Original Offer:Price: 153k ($31k into the deal)Anticipated rent: $2,000k/monthOperating expenses: $9.4k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $4.2k / yearCash on Cash return: 13.68%The appraisal came in at 146k and they raised some very valid points on why the property was not worth 153.  

@Paul Bryzek Before you start looking, you 1st need to be sure that you have the funds to meet the 3.5% down payment.

I did get a Freddie Mac quote last week at 4.32%, but they don't fund rehab so not our preferred route.I agree it would be tough to buy at a 6 cap if debt were nearly the same cost, but that's assuming no improvement to the property, correct?  

I was born and raised here and know a lot about the locations your inquiring about.

It'll hopefully put more pressure on the debtor to get their rent paid knowing everyone else there see's they are obviously behind.If you boot it, I bet you could structure the lease language in a way that would require payment of the rent in full for the boot to come off, plus the boot fee, because like you suggested the parking would be the last item funds would be applied to.

If rent is not paid physically at a branch (i.e. it is paid online or via bank transfer), the date of payment will be considered the date when funds reach our account.