This experience has caused trapped equity (Gross Yield was 15% at purchase but as property value increases, they've reduced to 9%).

Then when you sale the property , years down the road, the basis, which is essentially your purchase price or "principal" less the deprecation expenses prior to sale can be used to reduce the receipts from the sale.

I just have to document it correctly to prevent him from trying to argue that I agreed to reduced rent for the entire month.

The borrower must then qualify for the loan only using that reduced income.

The point of the complicated structure is to get flexibility and reduced costs (by way of avoiding full closing costs on each property), and also access to cash for quick closings and future access to the foreclosure market.

Take a top-down approach by considering the market fundamentals so you reduce your risk and increase your upside (cash-flow and appreciation potential).

This will reduce your out of pocket cost now.

Will they replace the pipes, reduce the final selling price to compensate for the damages, or hold firm on their “as-is” policy?

If you cannot demonstrate investment intent, your best structure will likely be an S-Corp to reduce your SE tax liability.

Example right now on a loan my payment is $582 but only $103 of that reduces the principal.