FHA loans typically require the property to be a primary residence for at least one year, so he should confirm compliance with his lender.Once rented, he can deduct expenses like mortgage interest, property taxes, maintenance, and depreciation starting from the date it's available for rent.

Typically the higher RE cost market will have the better cash flow (excluding an extract of value) over a long hold.  

I dedicated three months to remodeling the interior myself, transforming the space with a vibrant Retro Tiki vibe featuring splashes of color and creative design.

Typically max leverage is 70CLTV - very higher Prepayment penalties and be ready for rates north of 12% - I answer this question all the time.

Typically it’s a secondary use meaning the land must have a primary use (like a home on it).

@Haley White that’s awesome you were in a position to be able to pivot and take advantage of the market. 

In southern CA, even garage conversion ADU additions are typically costing more than the value added.  

Typical market rent for the area is 800-1000 for the zipcode, housing authority has max at $1300.

I use standard market PM rates in my underwriting, but I also would not work for those rates but it is fair compensation for the work.I typically use vacancy of 5% not because I have ever had a unit that had that high vacancy but I do not have a no payment category and I want the underwriting to be conservativeon the opposite, your rate is a bit high and your appreciation rate and rent growth are modest.overall, seems like a decent attempt at an analysis.  

The typical term of this loan is 12 months and rates range from 10%-12%.