Purchase price: $85,000Rehab: $60,000 All-in: $$145,000Current ARV: $180,000I just refi'ed and was able to cash out $135,000 so a little cash got locked into the property.The house literally needed everything from foundation repairs, to a new roof, all new plumbing, electrical, and a full interior gut.This property was initially 1600 sf, but it had a courtyard patio (house had a U-Shape layout).

I don’t know the layout of the property you’re referencing so an easement may clearly not be the issue, but would probably be best to check.

If you could lay out your “best case scenario”, it’d be much easier to give you some specific advise.

Make sure if you do BTS (build to suit) that it is not a weird design that is costly or hard to re-tenant and parking layout and ratio is good.

This is a basic layout of what's happening in my head, but I'm wondering if I'm oversimplifying things:At Year 0:Value - $150,000Debt - $100,000Equity - $50,000At Year 1:Value - $156,000 (assuming 4% appreciation)Debt - $98,653 (30 yr. @ 5.50%)Equity - $57,347At Year 2:Value - $162,240 (again assuming 4% appreciation)Debt - $97,230Equity - $65,010My question is, is it possible at the end of year 2 to expect to be able to cash-out refi at ~80% of the equity ($52,008) I have in the property and recoup my original investment?

Especially if you're moving or tearing down walls or re-configuring an entire layout.- Do you hire a general contractor to manage the job?

He suggested that I build them with a layout so some day they could be converted into SFR if I needed to sell.   

OR Gut the 1000 sq ft and change layout to modern SFH and rent it out or sell it.

So things like not picking certain materials early, making sure that certain jobs didn't happen too early (like painting) and mapping out layouts so that we don't have to reconfigure a space because the refrigerator was too big.      

Buliding smells, everything is dated from applicances to the layout to the paint.