They couldn't even properly handle my stacked washer and dryer.

We also self-manage, so not as hands off as you'd like to be, and many management companies are to lazy to work Class C rentals properly. 

I am doing my research and am ensuring that I have all of the proper reports/forms/legal literature, valuation tools, etc and have several friends who are RE Agents & Loan officers whom I ask questions, BUT I am still lacking information in certain areas.

Thanks,PeterBoston, Investor, Developer, Architect

It’s new but there’s an obvious need for this type of deal and there are lenders that will work with it given proper information.

Looking for large apartment complexes and repositioning, not easy so I do flips and development to build up capital.Daniel

Unfortunately, the friend did not fix the A/C properly, but he was able to invalidate the warranty from the original installer.Also, while I haven't experienced this myself, I have read cases where judges have claimed that tenants have equitable interest in a property that they updated.

For example, a stabilized NNN Rite Aid acquisition will lend much differently than a ground-up multifamily development. 

If structured properly, SE can be avoided. 

In all reality he didn't know how to properly manage a property and the eviction process sounded too scary so he gave in and the tenants got a free ride for many months.