Although it did not make sense for me at the time since a shorter time frame increases the monthly mortgage payment, the bank accepted the deal. 

People post ads on CL claiming to be renting out the property and take advantage of renters' excitement of lower deposit/monthly rent. 

A 20 year initial lease on a business that is growing in an industry that will only get bigger with a strong lease guaranty would have a significantly lower cap rate than a 10 year lease with a struggling company you're looking to turn around.That being said... as I started: I don't believe you are being unfair.

I ask because I came across a firm offering deals like this:Purchase, rehab and flip a distressed property, timeline 6-18 months.Minimum Investment $100,000Above $500,000 and an investor can appoint a member to the management boardMinimum asset price $1,000,000Management Fee: 2.5% of invested fundsManagement invests 10% alongside investorsDeveloper invests 10% alongside investorsSuccess fee of 50% on returns above 8%My main question is whether the 50% success fee on top of the management fee is highway robbery, or pretty standard on larger deals averaging 30%+ in such short timeframes?

I feel he’s full of bs.I explained to him that he signed a one year lease and that we’ve never had noise issues/complaints before but that I will ask the other tenant (who has lived in his unit for years with zero complaints from anyone about noise) to keep his TV lowered after a certain hour.There is a clause in my lease that says he will have to pay 3 months rent if he needs to terminate the lease early.

On the other hand if you buy 4-4plex buildings (perhaps all located right next to each other) you can use residential financing, a little bit lower interest rate, 30 year amortization, and no balloon.

(if the rent they are paying is not too much lower than market value).  

You are better off with a lower as is offer

In 2008, I noticed that his area did not really take any major hit to home price, maybe stayed same or bit lower, during the recession that hit silicon valley.

In addition, higher costs of living will continue to drive the population to lower tax states.This is really starting to make me consider investing out of state.Looking for some investor input.Thank you