My flipping clients will often do that because the appraiser may not take it as a bedroom for financing purposes and buyers may see red flags if its an unpermitted bedroom.

I assume these production companies have started their own financing companies and have deep pocket investors with them.We are still busy, when other companies are not, but if we were able to do our own long term financing at a lower rate than the banks than we would only be a stronger company.

I haven't done a deep analysis on Cleveland, Montgomery or Buffalo, but I would think they likely qualify at least for the type of long term, cash flow investing we aim to do. 

Spoke to attorneys, way to many red flags.  

Red flags?

RegardsGiles DalrympleIn my personal opinion there were lots of red flags with Lane Kawaoka deals.

I came here for the deep well of knowledge and experience that members of this community have.

Some markets may not cash flow that well and I get that but to say that it's okay to be in the red for multiple years because you have underwritten the market and know values will go up sounds crazy to me.I have only done a few deals to this point so maybe I am missing something but I would love to hear your thoughts on heavily weighing appreciation as the decision to move forward with a deal even when negative cash flows are the most likely short-term situation. 

Probably 2bdr.Make sure you're comfortable with the numbers before diving in too deep.

They didn't go as deep as some other companies go ( that's what she said...), but I've been happy with the referrals and professionalism from this crew.