This was for my growing family whom I can no longer bring too.

You get to set the interest rate (it can be 0%) and you get your investment amount back sooner.Some things to think of:To file a deed at the county courthouse is $100-$150 in cost (depending on which county)And you want that note to be pretty close to 70% of the ARV for the property if you don't want to bring any money to closing. 70% will allow you to roll in your closing costs.

When you buy an older property it's important to note that you are not typically required to bring them up to current codes.

They own one or two houses, owe nothing, and figure they've made a profit if they bring in more than their taxes and insurance costs.

Would it be a waste of capital to replace the old and bring in the new?

I appreciate in advance all of the expertise and different perspectives you all have to bring to the table but more importantly your willingness to share!

I sent them a rent increase notice bringing it to $1950 in 60 days....still a $700+ discount because we like them.

I appreciate you bringing them up, always better to have second eyes/brain to question everything.

This will bring many obstacles to you for one big reason, homes just aren't worth that much.

@Cody Furman first of all let the residents know that there is a new sheriff in the town with a welcome letter and explain the everything you can in that letter and then deploy some cloud based software like Buildium to track your tenants and the rent and charge late fee and give them vacation notices on timely manner and evicted the bad ones and do not raise the rents until you are stabilized and do the screening to fill in vacancy otherwise you will be in big trouble if bring in bad ones.Charge application fee of at least $35 per couple and they will pay and use that for screening.