We would like to take the money, break it down, and use them as down payment for a few new rental units. 

I use the 50% rule to quickly look over deals and then I will do a more specific break down after analyzing a t-12.

So often they break within 1-2 years and my cost to replace and install a new appliance is much higher than it would have been if I installed a new mid-tier option to begin with. 

At least for my properties (STR houses), the maintenance expenses are not even $200 a month:Lawn maintenance: $60-75Pest control: $30Pool (which I don't know if it would apply to your property): $65-90 dependingHVAC maintenance: $70 every 6 months (~15 a month)Capex of $3,000 a year means a bunch of appliances are breaking down continuously, or the house is in dire conditions.

Consequences for breaking this agreement include but are not limited to:- Financial impact- credit impact - etc “

If so, the break in employment shouldn't matter after you have two months of pay stubs.

Goal:Determine the "Break-even" cost of having one additional adult (and dog) live in our home. 

He thinks utilities would much higher and they would break down easier, causing more maintenance for the owners.

I had originally intended on breaking it off and selling it to help fund another deal, but now am tossing around turning it into a mobile home park.

Market crashed a year later and we didn't "break even" until 13 years later.