Ex (random numbers pulled out of thin air)$100k purchase $160k ARV$30k reno but $20k at cost$15k holding costsTotal Cost:$145k cost or $135k with contractorWith the contractor at cost, I have an extra $10k of margin where I don't lose money, but obviously not ideal for the contractor since they would make less.I think a good way to price it would be the equity would equal your profit if you did a fee construction at slightly below the projected ARV, and slightly below the projected hold time.

My career is inherently a career of repeat conversations as I do the same transactions and processes over and over but this one always comes back and I felt like it was a worthwhile post to help clear the air for both lenders and clients alike :) 

I live in anaheim California, when it's hot out, my upstairs apartment seems to trap all the heat inside since the ceiling is wood beams, it gets so bad that even if I open up all the windows and doors, no air flows through here.

To the best of my knowledge, one of the tenants (married) are employed in the accounting field at a local air force base, which was the only reason I was considering it.

I dont think I will get into the short term rentals or air bnb. 

I would go to the house with my air compressor, hook it up, and see where the leak is.

I have a 4 unit property that has forced air heat but no a/c.

The property has great amenities including central heat and air, pet friendly, washer/dryer, great backyard + patio, an upgraded kitchen and bathroom, and upscale furnishings. 

There are occasions where the borrower does have ability but does not qualify for traditional - but that is rare.Throw in the fact that I am not a bank so I can create loans out of thin air and only need a 10% reserve as another reason.I can share good and bad stories - it really goes to underwriting the borrower and the price they pay (paying more) is irrelevant if they cannot make payments

I’m active duty Air Force with four rental properties.