We should have a great group there discussing how to obtain Real Estate Professional Status by an accountant! 

In fact, it’s a LOT easier to find a good / great below market deal if (1) you offer all cash, quick close, NOT subject to financing and or (2) the property is one in which obtaining financing is difficult, if not impossible.Another example of where low DP is not preferable is when we syndicate property purchases.  

I am looking at a prospective out of state long distance deal that has been difficult to obtain lending on as there is both a regular home and mobile home on the same property and the mobile home causes the potential investment to not meet conventional guidelines and therefore not even DSCR loans are an option.

The only requirement was that the seller obtained an U&O prior to the closing.

Without the ability to obtain a loan / financing - the next steps will be harder to accomplish

Garages are often cheaper to convert to ADUs than ground up construction, but not cheap enough to obtain a profit worth the effort.  

I’m still a proponent for obtaining necessary permits as it costs more if caught, are issued a stop work order and have to then apply.  

If the existing rent $$  is subpar, are there any best practices to increase or obtain new renters?

However, to protect yourself, you should also obtain a separate STR or landlord policy that covers the specific risks associated with renting out the property.

In a few circumstances, I have obtained 100% financing by offering an equity share as opposed to debt financing.