For Conventional, there is no percentage/factor reduction where there is historical income figures to work with (reported a tax form)- the figures from the tax return are used.

BP, I’m looking at an 8-unit deal in the Northeast that was historically a non-profit co-op with tenants already in place at substantially below market rents.

Seller financingAlso want to be clear interest rates are really not high, this is where they historically are.

If this is Historic West End, then the permitting process could be much longer for this type work. 

Investment Info:
Other buy & hold investment.

Purchase price: $35,000

Cash invested: $20,000

0.86 Acres in rapidly growing market. Have been developing land. Now have water installed, w/ 6-bed...

Hi Wayne,Other neighborhoods to consider are the following: Near Eastside: This area has been seeing redevelopment and could offer good opportunities.Irvington: A historic neighborhood with a lot of charm and potential for renovation projects.Garfield Park: Another area that's been on the upswing and attracting investor attention.Mapleton-Fall Creek: This neighborhood has been targeted for revitalization efforts.Riverside: Close to downtown and has been seeing increased interest from buyers and investors.Reach out if you'd like to talk about financing options!

But now you are not talking about real estate as an investment, but rather a vehicle which you are building a business around.And lastly, we are still at historically high prices.  

This does require owner occupancy of both units for at least a year for condo application submission, but also assumes a number of other things including that nothing was performed with respect to prior historical tenancies that would disqualify you from a condo conversion.While the aforementioned would be ideal, it would be all for naught if Planning determines that if at any one time the ground floor was rented in the past.

Historically, the standard fundamental was that your going-in cap rate should be higher than LONG TERM, FIXED rate interest.  

I looked at historic appreciation for California vs.