A FC is not a profit center for any lender, regardless of what state they are in, borrowers are entitled to or may sue for excess equity.

We'd love to have you join us sometime, it's a great group of people, ranging from those on their first deal to members that have done development project in excess of $70 million. 

I guess you're saying that the excess cash flow is the risk premium I'm paid for what eventually will be some extraordinary economic loss above due to the social-economic factors of tenants and the older age of the properties.

I am open to investing out of state, but might feel more comfortable in the same vicinity, as I prefer to avoid excess traveling.

To me, Private Lenders are Doctors, Dentists, Pensions funds and other business people who have excess capital and they want to invest in ongoing projects of some sort.

On a standard purchase loan, no excess funds are allowed back to borrower at close of escrow.As mentioned above, some loan programs allow the cost of rehab to be financed and added to the loan.

In fact it was the Securities and Exchange Commissioners appointed by the second George Bush who adopted the rule allowing the 5 major investment banks in this country to leverage their capital in an excessive and unsafe manner leading to the great housing collapse/recession of 2007-2010.  

I believe some markets will be affected greater due to lack of demand or excess inventory.

There is a very good chance the house is operating in excess of the maximum occupancy permitted {here it is 4 unrelated adults} and outside the zoning for the neighbourhood. 

What I may do in a bid to try and protect the triplex from redevelopment would be sell off the excess land or do the developer partnership approach,  but sell off instead of keeping the finished properties,  and once that process is complete,  sell the triplex for its value as a small investment property.In any case,  its good to have options I suppose.