Use the actual NOI, not the pro-forma b/c that is how the property is ACTUALLY performing.

Calling the appraiser to see what you can do to push it up a "C-Level" would be smart before doing any reno also, might only need a few things to make it far more valuable in the eyes of the bank.I've heard of a tactic for figuring out demand, which is to put up a dummy or coming soon listing on facebook marketplace and see the amount of activity you get on it. 

Hopefully the current deal U/C closes and posting the disposition splits with $ amount per call, $ per lead and overall cost of proceeding as a cold caller.

Hi all,Looking to buy a R-C zoned property in Charlottesville, VA and add an ADU in the form of a converted 12x20 ft Shed for STR.

For cash flow, I'd point you in a C grade area. 

Also, that outlet might be on a circuit shared by 2 other bedrooms and the outlet might not be near a window for use with an A/C unit.

@Celine Li Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Its interest income - unless you wanted to run it through a C corp but then you pay corp tax first.Other option is to use a deferred retirement account. 

Like you mentioned , the prices are going down because a lot of people thought you could just buy a property and slap it on airbnb , expecting it to rent well without doing improvements , not realizing that the market would be overstaturated with " C and D " quality properties ( A+ are the properties i'm speaking of)I'm seeing that you can buy those type properties( A+ potential) that have simply been under utilized and 1.

I started the first one in January and going to request C/O next week.