In addition, the gas bills have shut off notices and are not being paid. (3 units are occupied and utilities are all paid by owner).

Additionally, how many calls does it typically take you to successfully close a deal using this approach?

And make sure to plan for the additional depreciation as well!

Early last year, one of our borrowers, an extremely experienced rehabber who had recently been diagnosed with diabetes, informed us that he’d been in and out of the hospital so frequently that he wouldn’t be able to complete the flip we had loaned on as first position lenders.We were aware that he had borrowed an additional $110k from a second-position lender.

After that's under control, focus on increasing income through additional work at your current job, taking on a side hustle, or finding ways to increase income on your existing rental.At the same time, educate yourself.

Given my lack of experience in accurately assessing the additional costs and potential risks of investing in an AE zone, I felt it was best to step back and refine my evaluation process before taking on something like this.Thanks again for your input!

I'm currently renovating my rear unit and it has the perfect layout to split into 2 units by adding a wall and an additional front door.

So if you are doing an addition, you are only contributing to the structure portion of value, not the land value.

At the end of the day; you need more money to do something like this.MAX LTV on new builds is 80% LTC, Meaning if the build is $550,000 and Land is XAdd ($550,000 + x ) * .8 = LOAN AMOUNTYou would need to come in with MINIMUM 20% of the cost in addition to closing costs and reserves, $80,000 is not going to cut it for this project.

Also there is an additional tax on the returns due to the financing.