That's a great way to put it.Hi Guys,Yes, that will be the move, I already know and have sketch of 2 ways to do it, I didn't want to get into a crazy rehab now, till I make sure my contractor is a team player and he will be able to do so, my idea is to add SF and create a master sweet, let's see if the numbers work fist, this is something I will do after the property is stabilized, I think I can get my capital back and some more with the 3/1 layout now, I will keep you posted!

I also have no lawyer so, requesting of tenant to contact with my lawyer is not an option.There is only one window in the unit because of the layout of the unit, it is not zoned as legal unit so it looks like one big corridor with a door on one end and window on the other end.

If you’re just saying the survey cost of getting the existing building layout documented is too much, you might be able to get creative and avoid the costs, but it’s not a great bet to make. 

This was the ideal value add situation, where I didn't have to change much on the layout.. mostly just design.

If you can design the layout to maximize rental income, it could pay off in the long run.- Learning Opportunity: Having your friend as a general contractor at a discounted rate is a fantastic opportunity.

I agree with Colin, everyone's circumstances are a little different and while I would take feedback from non-CPA I would only trust a CPA with questions that are that delicate.

All the units look great and done in workmanlike manner but the 2bd/1bath unit has a funky set up and layout where it looks like it was pieced together. 

It was a unique deal, a 2-2 single family that had a weird layout - but for our purposes it was perfect!

Stick with the books and take the steps that they lay out.

As of now, with estimating every house at 75K ( I figured high) with the interest at 7.5%, paying all taxes, muni fees, waste fees, and the salary of the manager at 35K a year, I would be netting 6K a month with the current layout.