Thanks for the reply, I was asking this question trying to understand the valuation for when I would complete the project for refi and potential profit.

I understand both sides and there are stress factors to each.JD's comment has a lot of validity and is a very real concern.

Let's break things down, hopefully, I am understanding everything correctly...Exit Strategy 1: Full Rehab and Rent IncreasePros:Higher ARV (After Repair Value): This strategy could potentially increase the property's value to $126,000, allowing for a higher cash-out refinance amount.Higher Rent: After the completion of the Scope of Work (SOW), the rent could be raised to $1,000, generating more monthly revenue.Long-Term Value: Completing a full rehab could increase the property's long-term value and appeal, making it more competitive in the market.Cons:Higher Initial Investment: The SOW budget is significantly higher at $15,750, requiring more cash upfront.Vacancy Risk: Asking the current renters to vacate for the rehab introduces the risk of vacancy and lost rental income during the renovation period.Longer Timeline: The rehab process and finding new tenants could extend the timeline before the property starts generating its anticipated cash flow.Exit Strategy 2: Minimal Repairs and Keeping Current RentersPros:Lower Initial Investment: With a SOW budget of just $2,500, this strategy requires less cash upfront.Quicker Turnaround: Completing minimal repairs and keeping the current tenants can significantly shorten the timeline to start generating cash flow.Reduced Vacancy Risk: By allowing the current tenants to stay, the property continues to generate income, avoiding the risks associated with vacancy.Cons:Lower ARV: This strategy results in a lower ARV of $110,000, which affects the cash-out refinance amount.Lower Rent Increase: The rent increase to $900 is less than what could be achieved with a full rehab.Future Repair Costs: Minimal repairs might not address all the property's needs, potentially leading to higher maintenance costs down the line.Financial Analysis:Cash Flow Considerations: Both strategies provide positive cash flow before reserves, with Strategy 1 generating $160 and Strategy 2 generating $148 monthly.

Hi, I understand that my PM pads the maintenance fee a little and probably doesn't get multiple estimates, which I understand now is probably normal. 

They may have owned their properties for the last 30 years and they may be 10 years, or more, behind on understanding what their property is worth. 

Title search and understanding who is foreclosing what liens are and are not extinguished2.

Details of property:3-unitMixed useGround floor is a hair salonOther two units are residentialI will live in one of the unitsI can’t understand why this is an issue to insure.

., then let them know that you're asking in advance because there is a chance you will NOT be able to renew them as you may need to vacate and renovate/sell for personal reasons. it seems most tenants are more understanding of not having the option to renew, when you're just going to be emptying the place to sell it. obviously that's not always the case. i would also consult with a RE attorney in your state to make sure that you navigate this convo in the right way. i know in some states the wording would be incredibly important.

But I understand you already have a home, so that may not be possible.

That is my understanding from the lawyer too.