They can be excellent properties, so long as you don't have to rehab them.We have a historic theater here in town that is on the auction block arising from the rehab costs going way over what was expected.It really depends on the historic nature of a building, the restrictions imposed and your market.

Roommates naturally generate more money.

They wanted to(and did) let the property go back to nature.

You may call the title agent who did your policy and simply ask if they will endorse you as a natural person with the QCD to be safe and see what they say.

As these deals surface naturally and attention is drawn to them is when a regulator may get involved, they don't have to search for them. :)

Now, take an investor dealer selling to a holding company that has 20 rentals, the commercial nature is obvious.

You could have forbearance issues and if there is no agreement, you should modify it prior to purchase, you might also have the borrower acknowledge the UPB to ensure everyone is in agreement as the issue comes from the borrower not paying as agreed.The fact that some tenant is whatever is irrelevant, if the borrower is "illegal", consider it a defaulted note at any time.I just addressed the math as that was the question I thought, there are many issues in the evaluation of a note, collateral value, compliance, payment applications and history, the nature of the transaction and the parties involved are all concerns. :)

I would never lend without security and personally think 8% is not an adequate yield for the risk.

RE consultants popped up in the 70s, not only did they get hammered under RE agency laws (even when the word consulting was not contained in the license laws) it is recognized that advising in RE is the function and nature of a licensee.

Decided I'm going to pursue a license as I'm by nature a data guy and want MLS access.