All state said they cover cash value for properties built prior to 1940, drewlling comes out less than half of asking price.

@Tom Gimer thanks for the shout out@Bryce Adams Tax assesed value is a terible way to base your bids.

Think about what renters in your target market value most, such as green spaces, community centers, or high-speed internet access.BTR is a rapidly growing sector, and careful planning of these factors can help ensure your project is successful.

In general hands off ADU additions cost more than the value that they add.Have you looked into what the garage could rent for as a garage?  

The refinance stage can also be a challenge since many lenders require a seasoning period, often around 6 months, before they’ll allow a refinance based on the new appraised value.

Much of this analysis is based on the size of the land, how much it will cost to do the horizontal development, and then estimate the cost of the vertical build and ultimate value (aka "sale price")

Meaning, 80% of the total value. 

Investors typically want a steal of a deal, so even 25% off is typically not enough for me to even stop....50% off market value starts to get interesting. 

One thing Josh taught me some time ago is to always have or return value to your team. 

Borrowers are not allowed to complete any of the work themselves as sweat equity.Loan to Value Calculations:The original principal amount of the mortgage may not exceed Fannie Mae’s maximum allowable mortgage amount for a conventional first mortgage.Purchase: For a purchase money transaction, the LTV is determined by dividing the loan amount by the lesser of the “as completed” appraised value of the property or the sum of the purchase price of the property and the total rehabilitation costs.Refinance Transactions: For a refinance transaction, the LTV is determined by dividing the original loan amount by the “as completed” appraised value of the property.Eligible Renovation:There are no required improvements or restrictions on the types of repairs allowed.