This will work no matter what, but you can get there faster if you can generate equity through remodel, take advantage of market shifts or buy at a discount (next to impossible at the moment due to tight inventory, but that may come back).The other component most new investors underestimate is you have to become an excellent operator.

There are a few advantageous components to them compared to conventional financing.

Adequate risk management strategies are essential to mitigate financial risks.Property Performance: Maintaining a healthy DSCR ratio requires diligent management of the property to ensure consistent income generation and control operating expenses.In conclusion, DSCR loans are a vital component of commercial real estate financing, offering both opportunities and challenges for borrowers and lenders.

In general there definitely sounds like there would be some difficult components of trying to do any type of expansion for the existing coach house and again, RT-4 does not mean you are permitted to have 4 Units (unless you have a 4000 sq.ft. lot or larger).

And it's ability to let you take advantage of all of the components of the IRR to maximize your return. 

Granted, we err on the side of doing things right the first time, but projects like new roof or new windows cost a lot and don't have that much impact on the appraisal, as long as the existing components are still in acceptable condition.

., I like how @John Karg is tossing the Internal Rate of Return components at you so you can get a true perspective of how that house is performing and can perform. 

I'd say the critical component to securing a worthwhile multi family investment (and any real estate for that matter) is timing.

Maybe it will make Mike think a bit more about Cash Flow and that Negative or Positive Cash Flow is JUST a component to be used in an overall calculation.There were several that tried as well an most were very close!

Is there a value add component or these are market ready?