The appraiser will complete the appraisal and fill out the 1007/rent schedule which will calculate the common rents in the neighborhood market.Those rents will be used to show if the new mortgage PITI payment will debt service itself.

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Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more.

@Dave Foster you are a genius at this I can seeI have a similar issue, so a followup to your answer: what if I don't own the entirety of the LLC that owns the 1031 exchange parcel property and is going to have the improvements?

Ive seen this done and tenants are issued key.

Some issues that I am seeing.'

Who was the Form 1098 issued to?  

There are often homestead exemptions and other regulatory issues that could cause issues with your loan, even if it were business purpose.

The house is liveable and the settlement is more of a cosmetic issue rather than a safety one (for now at least).

How do we set the LLC up to make sure it's not going to be considered when looking at bankruptcy issues.5.