I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

What I like about multifamily is the splitting of costs.

Hey Account Closed - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

They were seeking secondary homes for their family that could be rented to help offset costs and didn't require an immediate or transferrable permit.

You might want to partner up with a friend or family member to mitigate the costs.

But if it's coming at the cost of your health or something else important than time with your family then it's perfectly fine to step back when you need to.I think this goes without saying.

This approach ensures realistic pricing and helps avoid unexpected costs later.Good luck!  

They have been very professional and effective so far.

Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket.

What happens if you buy the SFH and hate renting it by the room but the cost to maintain is too much by yourself.