I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.1.Renovate and Buy Another Property•Invest to renovate our current home adding a bedroom to the house given our family outgrew the house.

At the pro forma income, the cap rate would rise to 8%, which is more reasonable but only achievable after renovations.

Purchase price: $136,000 Cash invested: $90,000 Sale price: $260,000 full renovation from studs What made you interested in investing in this type of deal?

With regard to renovations, I always suggest taking incremental steps to bigger renovations or partnering with someone who has already done a renovation at that level.I've been known to just go for the big rehabs for my personal investments here in Chicago , and during that process, it's always more stressful than it needs to be...As far as navigating the competition, I've found the best thing I can do is get EXTREMELY CLEAR  on what I am looking for; then I am confident pulling the trigger quicky. 

They can also guide you in choosing properties that appeal to dependable tenant demographics.Access to Reliable VendorsProperty managers have established networks of cost-effective contractors for renovations and repairs.

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

.- Both Sterling and Bank of Marin offer financing to TIC developers for acquisition and renovation of buildings that will then be converted and sold as tenancy in common.

The formula that is sticking out as a potential to me is what I have been doing quietly the last 6 years: buying a cosmetic SFH fixer in B areas with 3% down, live in and renovate, long term rent and repeat.

This can give you flexibility for purchasing or even renovating the next property.

You'll either need to write and mail a check or call and pay with a card if they are set up for that.Is it for a contractor who is doing a renovation that will be 30k?