It was certainly stressful to do a rehab loan (non-recourse) and refinance with non recourse loan and budget the renovations.

Rent growth has flatlined and will probably only moderately increase over the next 12 months so it really comes down to NOI growth from renovations and whether it will outpace the 3-4% negative return on cost that the properties are currently seeing.

Rough calculations on what I need to be looking for:90k deal (purchase and renovations to get max rent)20% down = 18k from me80% bank loan at 8%, 20 yr amortization = 72k-------------------------------------------------- Here's my DSCR calculation:Calculate Net Operating Income (NOI):Monthly rent: $125040% expense ratio (taxes, insurance, repairs, vacancy) = $480NOI: $1250 - $500 = $750Calculate Monthly Mortgage Payment:Loan Amount: $75,000Interest Rate: 8% per year (0.08/12 = 0.006667 monthly)Loan Term: 20 years (20 * 12 = 240 months)Monthly Payment ≈ $627.83Calculate DSCR:DSCR = NOI / Monthly Mortgage PaymentDSCR = $750 / $627.83DSCR ≈ 1.20Therefore, with a $75,000 mortgage at 8% interest over 20 years, the DSCR is approximately 1.20

A permit was was pulled in 2019 to close out violations as the remarks indicate the home was renovated without permits.

Examples include replacing a deck or renovating a kitchen.

2 unit house 30 year FHA 6.6% major renovations (roof,bathrooms,kitchen,etc) home has appreciated 397k when appraised to 550k zestimate (similar comps in the area are 500k).

Then an appraisal works to my benefit and the quality of the property would be very close (as I said the property I purchased had relatively cosmetic renovations such as painted cabinets).

Focus on what the rents will look like post-renovation with 4 units instead of 2, and have a clear game plan for refinancing to pull your capital back out. 

I'm under contract on a quadplex, fully renovated, at the highest cap rate for a small multifamily that I've purchased in my career, right now.

If so, how are you managing the renovation.