Plus stretching a little to get a larger base to build equity will pay off I think.

People will do it all the time and you may run into good tenants that will even stretch it further changing lights etc..Also remember for the most part MF values are based on cap rate and NOI..

If you stretch the 50k out in payments over 10 years at the best rate you stated, 10%, you have a note of ~$660/month (7,920 annually). 

Interesting points and scenario...I have seen a few folks who wanted to stretch and convert the laundry or storage into an efficiency on a fourplex or add a wall to make a large unit into two small ones all to get more cashflow....Worked fine for them (if done right) until, as noted here, you sell the place...

"The stretch for yield!"

Roy, we are on the home stretch of finishing this property.

I completely under the $1300 was a stretch but I was told by several people that's what they charge so I went with that number to see how much cash flow is possible.

I've dined in an old firehouse in Downtown Los Angeles and similarly had coffee at a very cool old firehouse in Old Town Sacramento.It should be obvious by now that (I eat out a lot and) many clever folks have turned buildings into restaurants and coffee places.My suggestion is to find out what type of space is most lacking in your community and determine if the property, through any stretch of the imagination, could be made to fit that purpose and still make economic sense.Another factor is if the historic name of the building can be leveraged into a PR benefit.

And then I get the property tax credit applied to that to knock it down a little.You can stretch your capital out way further than you think.I'd guess you could go to buying 3 or 4 houses a month with the income your saving now.

Stretch out the contingency period so you can put the deal in escrow and have a few days to see the area