If you are all in at $1Million and the ARV is $1.38-$1.5 Million their is quite a bit of forced appreciation.

The issue is the discount that is allowed actually causes harm in cases where the property is NOO or other situations where a borrower might be on the hook for deficiency or tax implications.Also, forcing you to purchase an asset in a geography that is not one you may want, like saying you must purchase on a nationwide footprint seems counter-productive to inducing the highest best bid from you.

In Georgia, they cans FORCE you to rehab the facility because the conditions are grandfathered in.

They have no force of law, regardless of the outcome.

Any way you slice it, you win: if forced to buy the place, you have a cheap place with equity that you can rent for a profit in a year (maybe sooner if the board is this sloppy); if the deal falls through, you get to move to Brooklyn and explore opportunities there.Good luck with it!

Know your rental market, know if your market cash flows or not, and how to add value to property to force it to cash flow and increase, get deals that have immediate ROI and equity.

They have offered to compensate me out of contract, because they "want the numbers to stay where they are" someone I know, knows the tenant which i didnt know until recently, they are the one who informed my agent and I of the appeal and the lack of military service, she showed me the court documents that the seller and her agents have still not shown us, The person i know that knows the tenant said he HAS NOT been staying in the apartment in fear that the courts are going to find out hes not a veteran and have the sheriffs come arrest him as the court is paying the tenants weekly rent because he's an unemployed scum bag who lied about being a military veteran, She's also told me that he has signed a new apartment lease somewhere else and she has offered to and has started helping him move his stuff out of the apartment.I forced my agent to get back under contract yet again, she made the close date for tomorrow Friday the 13th of all days, the guy still isnt out of the apartment fully(meaning all his stuff) there are still random people answering the door who are not on the lease who are missing teeth left right and center. still no walk through. yet, everyone still expects me to close tomorrow, I'm telling my agent, NO let me guess, contact an attorney?

So, planning on a sale in 10 years, with cashflow plus the forced appreciation, the IRR (internal rate of return) is over 17%.

Ideally you use hardmoney for purchase + rehab funds, and force appreciation of the property.

Let them know if there is any more damage you will evict.Eventually this will result in non payment of their rent and they will either both leave or you will be forced to evict.