Most, if not all, insurance companies will deny any claim on a dwelling with un-permitted construction/upgrades.

Repair in damage likely did not increase the value of the home, this generally only happens through upgrades like adding finished square footage or major remodels of kitchens/bathrooms etc.

I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town.  8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveableOwner finance: 20yr 6%rate with 20k down------------------------------------------------Total purchase 400KCurrent NOI: 41k     Cap: 10         (Tax,Ins,Maint, Util)Gross rent 4500/mth-----------------------------------------------Upgrade, Est repairs: 60k After reno: NOI: 59K   Gross rent: 6100------------------------------------------------Loan pmt: 2865/mth,    34k/yrCurrent Cash flow: 531/mth,  6,378/yrAfter reno Cash Flow: 2131/mth,  25,578/Yr-------------------------------------------------Added info- -Property line Joins with (growing) Community college-Tiny town-The Buildings are Currently "uglyish".- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

Hot cold, etc.. what are the comparable properties and do they have multiple upgrades? 

Normally this is my busy season with upgrading fabs, etc.

If your upgrading to a new property (larger home), job transfer or a extenuating circumstance of a life change, lenders will underwrite the loan as a primary in a make sense scenario. 

Once the renovation was complete, I helped the client with tenant acquisition and long-term rental management, turning the upgraded property into a sustainable income-generating asset.This project not only increased the property's value and rental income potential but also provided the client with a solid, long-term investment in the real estate market.

If its an older home w 2 wire service you’ll need to have PGE upgrade to 3 wire service.  

How much more will you get for the unit with the garage upgrade vs leaving it as is. 

And then if you want/need the fancy features, you can upgrade piecemeal.