Then how is cash flow looked at - monthly / annuallyFor example your cash flow in July is -1000 but in August is 800, you are in the red but do they get a percent of August to put you further in the red?

Check local zoning laws and building codes to ensure converting the basement into a separate apartment is permissible.

If they don’t have both or “haven’t filed yet”, huge RED FLAG.

Check with local zoning rules etc .

Zoning laws, permits, and construction delays can also complicate things.Seeking Your AdviceSo, I’m turning to the BiggerPockets community for guidance.

Are there any potential red flags or points I should be cautious about?

I’m not a professional in acquisition or financing, but I’ll share some thoughts from my personal experience.Building Codes and Zoning Ordinance: research your local zoning laws and building codes.

Here's how to get started and advice on each area:Section 8 Rentals:Education: Learn about the Section 8 program, including eligibility requirements and benefits for landlords.Networking: Connect with local landlords who have experience with Section 8 rentals for practical advice and insights.Property Selection: Look for properties in Raleigh, NC, and surrounding areas that meet Section 8 housing standards and have potential for rental income.BRRR Method (Buy, Rehab, Rent, Refinance):Research: Study the BRRR method to understand how to find undervalued properties, finance renovations, and refinance to pull out equity.Partnerships: Consider partnering with contractors, lenders, and real estate agents experienced in BRRR to streamline the process.Market Analysis: Analyze local market conditions to identify neighborhoods with potential for property value appreciation and rental demand.Airbnb Properties:Regulations: Familiarize yourself with local regulations and zoning laws governing short-term rentals in Raleigh, NC.Property Preparation: Prepare properties to meet Airbnb standards, including furnishing, amenities, and guest experience.Marketing: Develop a marketing strategy to attract Airbnb guests, leveraging platforms like Airbnb and optimizing property listings.Overall Strategy:Continuous Learning: Stay updated with industry trends, attend local real estate meetups, and consider joining real estate investor groups.Financial Management: Manage your LLC, Opal Capital Holdings, effectively to track expenses, income, and tax obligations.Long-Term Goals: Keep your multifamily apartment goal in mind, and progressively scale your real estate portfolio based on experience and market opportunities.If you would like some help getting started, or just want to discuss please feel free to reach out to me directly.

In addition if you plan to rent by the room after you move out, check zoning because that style of rental is sometimes called a "rooming house" and regulated differently and may not be allowed where your home is.

Your thoughts and suggestions are greatly appreciated.Leticia My view is AB1482 requires you to negotiate with tenant any significant change of lease terms (loss of garage definitely a change of lease terms, loss of yard and construction zone may be change of lease terms) and your tenant can likely block your efforts.