To add on to what Account Closed saysYou analyzed all SFH or 4 unit properties (or fewer) the same way - using comps.

They did give me some deals on some add on things because they were already working there, but I had also previously used them for stuff on my own house as well.

@Ashley Norris my thinking would be that as a rental, doing this will only add one more unit, correct?

I literally received 20 calls from the time I posted the add on line (8pm) to lunch the next day.

2/1s on large lots are a good opportunity for a value add... buy the underpriced spec and add on a bed and bath, now you have a 3/2 at a much lower all in cost in certain areas.Maybe this makes more sense for flipping... never attempted it on a rental.

Keep in mind that bathrooms would be an add on in most of these.

I have an add-on question concerning the topic.

In doing the rehab I would probably do an all new kitchen, bathrooms, and add on a master bath. 

If utilities are included and paid by the landlord then you can go up to 60% sometimes.The purchase price would then be 340,800 at a 10 cap.There could be value if the rents haven't been raised in a really long time to keep it full and you can increase the yield that way.Also if the property sits on premium land or spread out with extra land for development you can add on or sell to a developer for higher density or re-purposing at a premium.

You might want to invest a few dollars, to send the affidavit by certified mail, at least (I personally would probably also do the return receipt requested add on).Please let us know how things work out for you.