He was worried he would lose his $40M...

Lauren,Thank you for your input yea I am seeing something similar at the moment basically homes I could scoop up for 500k and resale for 620k but between the rehab required and loan costs it leaves razor thin margins even with a simple 25k rehab doing work myself in SD I lose money on this due to closing costs alone. 

That is an a$$ move to prevent other from getting in for years to come.Yet the town is to determine which goes to what class and that could also mean a lot of folks have their primary residences rented which may allow for a couple others to sneak in after the new ordinance is in place, but I think that is highly unlikely.Either the VR sections will need to renew annually permits costing you $250 each year per unit.If you don't you lose a spot, If you sell you lose a spot, if you don't comply they revoke your permit and you lose a spot. 

Ideally while the walls were opened up I would have completed plumbing for 2nd and 3rd floor too, but I was living on the second floor and didn't want to lose having a usable bathroom and kitchen at my residence.

Don't try and save a penny....only to lose a dollar! 

If you can acquire a good property, good neighborhood, good condition at a good price AND you won't lose money month to month... 

If the worse case scenario makes money at all or doesn't lose much, that's GREAT because even if everything goes wrong, things don't go to the dogs.

On a 20-30 year timeline, I don't think there is any losing in this game if you underwrite conservatively.Best of luck to you, and hopefully you can get your feet wet this year!

Not sure what to say about any potential theft, but easiest way is to have it shipped to the cleaners house or you go and personally restock once a month.The potential theft is likely not significant on a yearly basis and if the cleaners are doing a good job and you are making money then I wouldn't lose sleep over it.

At this point we were close to losing the deal since we were running out of time.