We've been honing in on a pretty good development/investment formula that is working for us where we buy an existing single or multi-family house that can be improved or easily split into smaller units, and then we also add small new construction units to the property (townhomes or duplexes or cottages) and, generally, we rent them all out (though we have sold a couple of single family rehabs and we may sell the units in our next big project...

Existing liens/mortgages (Run a title search)2.

Whether buying land to develop, buying existing Storage locations, reduce risk of over inventory of storage units in one market, TIME waiting for either land or a location to become available for sale, while we are trying to grow our business.Start small and MAKE YOUR BIG MISTAKES EARLY. 

If you price the deal based on the current rent roll, you will not be remotely competitive in your offer, since many other investors will price it on $1,600/mo, with a small discount to account for the remaining term of the existing leases.On expenses, as noted, what seller pays is likely very different than what you will pay.  

They're all private/HM lenders, but they do exist. 

We do qualify to refi without adding but we are then paying the mortgage out of pocket.Our thoughts are to use the existing infrastructure to build out the 5 bedroom house, then house hack.

Should we just call up every builder and ask them to quote on a job that does not exist yet?

So if you could gc them yourself, you could force some equity on the new construction deals and the new construction ones might be a no brainer.The other question I'd have is whether you're getting deals on the pre-existing homes.Ultimately, its going to be real tough to scale either one if you're paying retail because if you're buying 250k homes and putting down 20 to 25%, you'll run out of cash real quick. 

And people refuted me when I said racism and discrimination in housing doesn't exist.

As a first time investor, I'm thinking to replicate those existing houses (with little bit of my touch) but wanted to ask what would be the pros and cons in terms of competing with existing STR's in the community?