The reason should be communicated to the tenants.Since this is a case where the landlord wishes to terminate the lease early, the landlord may want to consider offering a cash incentive to the tenants.If the tenant doesn't agree, they're legally allowed to remain tenants until the remainder of the lease.

Your expense ratio remains flat, and therefore doesn't really create much value in the deal.Compare your 2% rent and expense assumption to what most syndicators underwrite: 5% rent growth after an initial renovation bump; and 2-3% expense growth; and you get vastly different outcomes.As to whose assumptions more closely tie to reality is to be determined, but if you used assumptions more in line with what syndicators are using, I think you will find the return projections narrow dramatically, if not flip to SFRs.  

(Some of us have more than one...)So here you are.Your first step should be to get the facts and then reassess your options.You'll need realistic and accurate estimates of your ARV, your remaining repair expense, market rent, and total projected holding costs.If you run your numbers and you can still make this work as a rental, then great!

Property is not worth $1M and was over inflated to appear note holder has 20% equity.To answer question this is seller financing but this end result rarely if ever happensSeller would be better selling it for $800k+ cash and end up in better place

I have heard of instances where one (the borrower) is allowed to choose the appraisal company or put in a recommendation for one which the institutional bank may honor, and then the person already knows someone there, that they have gotten to know with time from other projects, and it's not unnaturally inflating value but favoring a good one to keep the reoccurring client.  

If you put the property into an LLC after the fact, then the bank MAY call the loan (require you to pay off the remaining balance).

She wants to take the profit and pay capital gains and the take the remaining !

You will certainly need a mason to do tuck pointing and likely capping of any remaining pieces left.  

It’s a familiar debate, as Californians have faced this choice twice since 2018.Under the 2019 Tenant Protection Act, rent hikes have been capped at 10% per year or lower if inflation rates dictate.

You are financing at less then likely future inflation rate.