On the flip side, having more choice in location with an existing product could be advantageous to both his personal life and the earnings potential; add in the second unit having the potential of being a STR/MTR and location becomes even more important.The contract/permit side CAN be challenging location by location; assuming he's working with someone who knows what they're doing, Raleigh makes it easier to get permits for these larger "small scale" projects than Durham.

Also you will likely have way more options on lenders and loan products.#2.

Without knowing how much of the renovations you were planning on doing yourself over time versus how much you were wanting/needing to finance up front, you would also want to talk with potential lenders about what loan products they have which could incorporate both the purchase price as well as the reno costs into the loan package.Hope this info helps get you pointed in the right direction - definitely keep us updated as you move forward with this project though!

You should look into DSCR Loans - many investors like yourself typically move to this loan product once they max out with DTI/qualifying conventionally - a bit higher in rate than conventional mortgages - but no DTI ratio or tax returns/income verification makes a much easier qualification process and LLCs are 100% ok (even as sole owner) and actually often preferred.PS - published a 10-part article series here on BP last year on everything you'd want to know on these loan types - sharing links below, hope it can help!

can utilize the no income no doc DSCR loan which works beautifully and can take upto 80%  Really think we should stop using "no doc" to describe DSCR Loans - really isn't accurate and adds unneeded stigma around the loan product What types of "docs" do you require for a DSCR loan at easy street ?

We use a lot Zep products on our houses. https://www.menards.com/main/p-1642874257675632.htm?

@Allan Wu take into consideration that tenants are not going to be as careful as you would be, so make sure your lease states no flushable wipes, paper towels, feminine products, etc., that easily clog and that they’re responsible for repair if used.

If they don't want to be cooperative and productive and speak civilly, I will simply let them know the actions I will need to take and if I need to I'll take those actions. 4.

In addition to FHA, I have a conventional loan with the option to put as little as 3% down as well a speciality product that has lower rates if the property is in a designated area.

It's a product of people wanting to hit the easy button.