His reasons were: a) he can borrow capital improvement budget, thereby not diluting LP returns and b) he could not underwrite yield maintenance.He continued to imply that his business model will remain short term holds (under 5 years) so this debt works for him and is better than fixed rate.My question to this community: would you still be willing to invest with an operator taking out floating rate debt in today's world?

As I need to register this business with the state and county, should I need to register LLC as "531110 - Lessors of residential buildings and dwellings" (NIACS code) or something else?

Sammy, please check your DMs and feel free to browse my business profile; link is in signature.

I'd love to explore how I can be a valuable asset to your business strategy.

In my almost 30 years in tax business, I have never had a problem that she is concerned about. 

The $400,000 gain from the sale of the property will bring your taxable income above the $0 capital gains tax threshold.

Look at it this way you are opening a new $400k to $2.5M business location and you are going to let it open for business without coming in to go over everything. 

It’s very common in today’s environment that not only are deals too tight for an Agency exit today, but the value add business plan was delayed for any reason whether it was a change in management, slower lease up than anticipated, and now the property is trending positively each month towards Proforma numbers, but needs a bit more life, there are ways to get it done!

As you said it will free up some of your time and will help accelerate your business.

Another strategy is looking at short term or mid term rentals thats one way to cashflow but it does take more work as your basically running a hotel business but once you figure how to automate things it will get easier at least thats what the short term rental investors tell me lol.