BP Masterminds, Pick this apart!: Good MF Investment or What?

Question

Curious as to how the BP Community would analyze this property mixture....We're looking at a single property (3 standard lots) with multiple income-oppurtunites on site that had previously been reserved for family/friends, so there is not much of rental history to relate. The property is probably the best in the neighborhood ($-wise), but only due to extra buildings on property. Hard to find any comps nearby because this place is a little unique to the neighborhood:

• Main House: ~2100 sq. ft. 2 Bedroom/ 2 Bath SFH w/ in-ground pool & hot tub, built in late '60sSomewhat dated but easily updated cosmetically & with new appliancesNice covered patio w/ built in outdoor kitchenAdditional ~ 400 sq. ft. Pool house with plumbing Additional ~ 300 sq. ft. shop/storage buildingProperty on corner lot with 2 extra lots backing up to the end of a cul-de-sacPossibility of converting one of extra buildings to office for side-hustle/LLC
• ~2100 sq. ft. 2 Bedroom/ 2 Bath SFH w/ in-ground pool & hot tub, built in late '60s
• Somewhat dated but easily updated cosmetically & with new appliances
• Nice covered patio w/ built in outdoor kitchen
• Additional ~ 400 sq. ft. Pool house with plumbing 
• Additional ~ 300 sq. ft. shop/storage building
• Property on corner lot with 2 extra lots backing up to the end of a cul-de-sac
• Possibility of converting one of extra buildings to office for side-hustle/LLC
• Garage Appt #1:Connected to main house by a shared roof and connected breezeway~ 900 sq. ft. with kitchen/full bath/laundry and separate access/entry (stairs)
• Connected to main house by a shared roof and connected breezeway
• ~ 900 sq. ft. with kitchen/full bath/laundry and separate access/entry (stairs)
• Efficiency Appt:~ 800 sq. ft. & connected to main house by a  shared roof and connected breezewayLocated beneath Garage Appt #1Only 1 big living/bedroom with full bath and kitchen
• ~ 800 sq. ft. & connected to main house by a  shared roof and connected breezeway
• Located beneath Garage Appt #1
• Only 1 big living/bedroom with full bath and kitchen
• Garage Appt #2Separated from Main House completelyDedicated 3 car garage for parking for occupant...also included washer/dryer in garage for occupant's use only"Boat Shed"  (carport with enclosed storage) on slab for occupant's use
• Separated from Main House completely
• Dedicated 3 car garage for parking for occupant...also included washer/dryer in garage for occupant's use only
• "Boat Shed"  (carport with enclosed storage) on slab for occupant's use
• ALL (3) properties are centered around an in-ground pool w/ hot tub.

• ~2100 sq. ft. 2 Bedroom/ 2 Bath SFH w/ in-ground pool & hot tub, built in late '60s
• Somewhat dated but easily updated cosmetically & with new appliances
• Nice covered patio w/ built in outdoor kitchen
• Additional ~ 400 sq. ft. Pool house with plumbing 
• Additional ~ 300 sq. ft. shop/storage building
• Property on corner lot with 2 extra lots backing up to the end of a cul-de-sac
• Possibility of converting one of extra buildings to office for side-hustle/LLC

• Connected to main house by a shared roof and connected breezeway
• ~ 900 sq. ft. with kitchen/full bath/laundry and separate access/entry (stairs)

• ~ 800 sq. ft. & connected to main house by a  shared roof and connected breezeway
• Located beneath Garage Appt #1
• Only 1 big living/bedroom with full bath and kitchen

• Separated from Main House completely
• Dedicated 3 car garage for parking for occupant...also included washer/dryer in garage for occupant's use only
• "Boat Shed"  (carport with enclosed storage) on slab for occupant's use

I'm needing to live in 1 of the buildings while my job is on-going for about 12-16 months. I'm able to live in whatever property is vacant, so the house is available to rent if have occupants.

How should I analyze this, with the property being hard to resell as a SFH because the price is above the comps due to the extra income-properties....? Will I be able to rent out the main house as a SFH with possibly 3 additional tenants in close proximity? How would everyone treat the access to the pool/hot tub if all 4 properties are rented? Any guidance from you "gurus" would help?

If I need to add any details to help, please comment. Thanks again BP.

Cody Montgomery · Answer

What is the general consensus on ARMs these day? I understand how quickly it can get away from the borrower, but if the intentions are to more than likely turn-over the property after the initial locked-in period, should I be as leary?

William Collins · Answer

Howdy @Cody Montgomery  this is a tricky situation, and here is the best way I have seen to do this.  You need to find a portfolio lender.  Ask specifically if they hold the loans in house, or if they need to be Freddy Mac/ Fannie conforming loans.   If they do not then this bank is an option.  The second option is the commercial loan department of smaller banks. They will take more non conforming loans and lend on the cash stream of the property/ asset.  This option maximizes the potential as it is income based, but rates/loans are more likely to be 5/10 arms or the like.