It was great to have him living in my first investment because I tend to screen my tenants to his standard.

If cash is valued at a standard 10% and your mortgage is at 5% when you pay down or have equity in the property every dollar of equity is costing you 5% more than the mortgage was costing.

I bought this house for 40K, put 20K into it and brought it up to our standards for a rental.

Overall, if the cash on cash return and projected total ROI meet your standards, then you should be good.

However, my real question has to do with a couple of red flags that we are seeing that may just be standard procedure for the hedge fund that owns the property.

a toilet built to 1992 standards uses 1.6 gpf,  9.6 gallons daily..... 

(Not real estate involved) Either way we've created SOPS (standard operating procedures) Every employee detailed what they did, how they did it, in writing, and if needs be, with diagrams.

Very high by Western standards, but with cap rates in the low teens and plenty of room for price appreciation (comparable properties in other East European capitals are almost twice the price) this figure could be interesting for some investors.

with that cash, you can get a couple 4plexes next to each other. or at least one. you'll obviously need a loan, price tag will be around a million. good thing is it would be conforming for a standard 30 year loan. any bank would probably require around 30% down FYI.

As far as renting out the other unit is there a good place to find standard contract to draw up or is it something I should involve a attorney with.