Translated, this means that the credit allowed by a seller and thought to be earned by a buyer are not the same amounts that ANY lender will be considering to establish the down payment.In most cases, rents rise over the term of the option or sale contract.

While your costs should not be as high as a new build, in your shoes, I'd probably budget at $60-$75 per sq. ft. depending on the amount of structural alteration and restoration involved and the level of finish you would be placing in the units.

Does it only alter sale marketing?

Your lease should state no alterations without written approval.

If the home needs a complete rehab then a past ARV is meaningless as a rehab will alter the original materials and mean complete code compliance.Depending on the extent of the damage, it may be cheaper to tear down the residence and start over.

So I'm hoping that translates into a driven and motivated person who is looking to grow in his real estate career.Thanks Bill I'm not really sure how that's going to come into play either.

Nathan - when I say "Gut" I don't mean "Tear out drywall and work on the mechanicals, then put the drywall back in"...I mean major framing work, dealing with structural walls having to be torn out/rebuilt/moved, moving around the foundation load points... major structural alterations.

He told me (which I already knew to do instinctively and thanks to reading here at BiggerPockets, but good to be reinforced) to put together a lending package that included: 1) a cover letter explaining the credit history; 2) an "About Me" profile on myself, explaining how my career experience and other factors will translate to success as a a local income property investor and property manager; 3) an "About My Team" profile demonstrating that I have the network and support to succeed.I am fortunate to have a kick*ss team and, frankly, a similarly strong toolkit of personal attributes that don't necessarily ensure success but make it a helluva lot more likely.

A higher rental rate on a piece of paper does not always translate into greater profit.If the present tenants are a more desirable situation, be careful you do not poison the relationship by giving the impression you are a greedy person.Remember, tenants go to work every day to enhance your life and make your business venture successful.

Are you offering translation services?