If you're talking about building an interior wall to create a bedroom, this could work so long as you aren't significantly reducing living space compared to the competitive rentals. 3 bedrooms with a tiny living area could cause problems.

This is IF all other criteria is solid.

Hello, I'm closing on my first rooming house this coming week in NJ.

Worked with an agent via a referral and landed this centrally located home that comes with a 1BR/1BA casita in the back.

I suppose if we had hundreds of loans out, this would be impractical.

Used enirely OPM to buy this one, and borrowed money from a family member who is in commercial real estate to do the renovation.

Hey Caitlin, locals refer to this area as "Shacktown".

I would be curious to hear people's feedback on this.

I would still use a Hard Money Lender for something like this - some have a minimum but you may just have to search for a bit and find one that doesnt.

This of course pushes "comps" lower and affects the selling price lower of anybody trying to sell.