I'm not looking to take advantage of my tenant but I don't want to be taken advantage of either.The value of commercial real estate is entirely tied to what you can earn from the property.

Great story shows the importance of tying a loan to a property and ensuring the borrower has enough equity that everyone gets paid if the worst is to happen.

I would house hack and rent out the 2 remaining bedrooms.

So you netting $830 and $900 a month after the mortgages and you have to pay $900 for the Heloc so you have $830 remaining after virtually putting 0 money down?

I'm not sure how much you're tied to that city, but I would strongly consider moving to a more affordable market if you can.

Having it tied to when a new tenant is selected is ridiculous.  

As a result, only a few types of residential owner financing remain practicable.

Section 8 pays 80% in rent guaranteed (remaining is due by tenant).

In this method  all improvements and equipment should remain with the building. 4) If I give a tenant allowance I increase the base rent to cover the cost of the allowance.

was their Legal Dept drafted an addendum which if we go on our own, we plan to incorporate into a new Lease, which Tenants already signed, at least acknowledging since they didn't notify us, they agree to limit number of kids (some of our neighbors are pissed off about the traffic, but we explained to them our hands are tied).