I effectively paid little for the illegal units when I brought the buildings (say $200 PSF), but the square footage is good, they have respectable enterances, decent light, amenities, etc. so it’s worth the hassle of dealing with the city.

Both alternatives allow for the property to cash flow respective to their rent roll.Any guidance would be greatly appreciated, thank you!

Markets and potential in respect to what? 

I really liked him and he was really respectful.

I'm guessing I ask the managers and realtor respectively what they charge.

It might be possible to get $100K limit on one, maybe two cards, but after that, banks would be morons to issue you a third card with any respectable limit.And I say this as the former holder of a card with a $39K limit (boy, the horror stories I could tell you on that mess!).

In closing, before reaching out to potential lending sources it's important to understand and respect their tolerance for risk by painstakingly projecting, accounting for and presenting all costs as accurately as possible.

They are both well respected and well connected in the local RE community.

My question is how different is flipping these different from stick homes with respect to federal taxes in regards to deducting all the repairs and such.

@Pete Mathias on top of what others have said be aware that the city of Tacoma have decided in their wisdom to ape Seattle with respect to LL-tenant rulings.