I run numbers pretty conservatively, so I know that I will likely be leaving some money in the deal. ... however, with comps ranging from $235-355 per square foot AND the additional square footage added during rehab it is plausible that this will be a perfect BRRR! 

Buy – Look for properties that have enough sq footage and or lot size to add an ADU*; each city has specific requirements and owner occupied requirements for renting out units.

Bonus is 2 ADU's in the back (possibly makes sense to do a tear down and build new on that square footage) but there are 6 doors on property.I was supposed to get renovation money (rehab loan) but looks like lender messed up that deal.

(or upsides to landlording if you are glass half full)Lack of liquidity - Harder to sell a 6% note than a houseLack of appreciation - While not guaranteed, over the long haul, appreciation is hugeShrinking equity - Rather than growing equity as a landlord, you are losing equity (though you could reinvest if you are disciplined)Taxes - You are avoiding property taxes (which are admittedly terrible) but you have acquired income taxesServicing - Servicing is not totally free or totally simpleForeclosure - Lot harder than evictionInsurance - Rather than just getting it, you have to make sure someone else has itNo Exchange - 1031 does not work with seller financingNo Development - Sometimes development rights or demographics change and it would be great to add another unit or square footage. 

The square footage is 1260.I personally have not a full rehab like this only a cosmetic rehab.

Plus when it is added square footage and is actual permitted legal space, that's helpful on the resale.  

- DanI was in a similar position with my 1st property years ago regarding square footage and the 0.5 bath.

Can you increase the square footage?

Average studio square footage in NYC is 450sqft.

. = $225,000) The 5,000 sq ft warehouse would yield 3,500 sq ft net rentable square feet (-30% of gross square footage for hallways and exits)6. total costs :.