Hi all,I am looking at a potential rental acquisition where the home contains a garage conversion into a room and it is unpermitted.Note that seller has not included this room in the sq footage and i am not purchasing it with the assumption of conversion to permitted.If i were to buy and turn into a rental - is there any liability to renting it out with that unpermitted conversion?

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

Also, a heads up that a typical loan assumption will take 60 - 90 days on average, so be prepared for a long closing period.In our current market we have seen home values decline since 2020/2021/2022 so there may be some motivated sellers out there who need to sell but their loan is now greater than or equal to the value of their home. 

I was under the assumption that I needed much more hands on experience but have since been told that the 6 years I owned a GC company would qualify. 

Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

I've spent a lot of time on the pro forma as well, but a lot of the assumptions are based on the Houston market which I'm a lot more familiar with.Does this seem like a viable plan?

One said to email the Assumption Department.

2) most lenders will take many months to process these requests  3) most lenders will require you qualify in order to approve the  assumption ...good luck

Once you make assumptions about redeploying your periodic note payments, such as the rate of return earned on the reinvested amounts and the periodicity, you'll see improvement in the CAGR for the note.

@Alya BoumizaI would say your assumption of the rent is wrong.