In our case this was an annex built without proper permission, which limited the m2 that the bank would value the property against, and limited to how much space we would be legally allowed to use.

You've had lots of investors, nobody is complaining, you aren't over hyping your past deals but they are easily verifiable and have the proper filings.

However, with proper cash flowing properties, that would be well worth it in my opinion. 

Hey BPers!
Just curious where each of you stands on this one.  I realize this is a case-by-case basis.  Sometimes the tenants plan on paying a month's rent at two places to allow a less-hectic move.  However, this co...

Just need to stat under the occupancy limit.Also keep in mind basement needs to be livable square footage, ie have egress and proper ceiling height. 

If the additional mortgage payments are the result of cash flow coming from the property, this is a great way to pay less interest over the loan duration.

Can anyone recommend software which would accept monthly payments (from me to seller) and create proper 1099 forms for tax purposes at year end? 

There is a safety and follow up piece to have the proper information.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

In order for money to go to work it needs to be invested properly.