Based on the info in your post, my recommendation would be to turn these assets into well oiled machines and max out their NOI.

I think I’ve covered my bases, but I’d love to connect with others working on similar models or interested in this niche.Looking forward to hearing your thoughts!

Dwelling (Building coverage)The limit should be based on the Replacement Cost of the building (cost to rebuild withthe same kind and quality excluding the foundation)2.

In high-cost markets like Chicago, that can be tough to meet.If you're looking at a duplex, the self-sufficiency test doesn’t apply, so you’d just need to qualify based on your personal income and the rental income your lender allows.If your current lender isn’t familiar with making FHA work in your situation, it might be worth getting a second opinion from someone experienced with FHA multi-unit financing.

As to your point about confusion in the future, it's our policy to leave the conversation and thread open and available for anyone to read, they can gather all of the information and make an informed decision for themselves based on ALL the information provided.

People were so quick to say he was way off base.   

Reason why is if you go to sell it, people are not going to comp it based on 40 year loan.

I have ideas of the values, but nothing based on anything concrete.If I take out a construction loan, how do I pay for the construction loan during the process? 

Hi Mike,I'm a Los Angeles area based mortgage broker that can assist.

 @Deepak Malhotra based on your sales price, I assume this was also sold many years ago.