Both houses have detached garages and I have been considering turning the garages into 1 bedroom units. 

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We n...

Hey @Ricky HernandezGreat question, and it’s awesome to see you thinking ahead about the potential for turning your new-build home into a rental.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

However what happens when the tenant vacates and now the unit has to be turned over/takes a few months to find a new tenant and during that same period of time the sewer line goes and you get hit with that $15,000 cap ex expense in addition to the vacancy and turn over costs.

With this loan, do properties have to be "Turn Key" to qualify or can they be used on fixer uppers?

I'm trying to raise funds from my family and I am being asked to produce pro-forma scenarios at 2, 5, and 10 years which should include IRR and ROI.

What about my search is producing such limited information?

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000

This is a 100+ pad community located near Downtown Bloomington (Near Indiana University). We n...

There's obviously opportunity here to build this out and turn it into a basement apartment, which I think would cash flow because of course there's no mortgage.