Many find bumping up their purchase price, albeit slightly, might yield better results. 

I'd bump it up to at least 10% or above.

So make sure you're not comparing a 5 YR IRR to a 3 YR IRR, because that's a huge difference on these value-add projects that bump up the shorter term IRR. 

This would give me a big equity bump, allow for larger cash flow opportunity (renting a 4 bed/2 bath in place of a 2 bed/1 bath), and I could avoid most of the headache involved with a rezone. 

Trying to bump this post, I have still not gotten a definitive answer on this.....

Keep it simple.1 - Use the $100k as a 20% DP on a NNN with a 10CAP (w/bumps)2 - 10CAP NNN NOI = $50k/year (10% of $500k)3 - $400k loan payment = $34k/year4 - Cash Flow = $16k/year5 - Take on 2 Cash Partners at $50k/ea.  6 - CP get 10% return/ea = $5k/yr each or $10k/yr total7 - You retain $6k/year.8 - Cost to CP's $50k/ea with a 10% guaranteed return/year9 - Cost to you = $0 with an infinite return, but guaranteed return, of $6k/year.10 - Repeat......... 

That seems to be my biggest speed bump.

bump

With all that now I’m getting the ac don’t work again so I send out a ac tech I explain to them the the tenants are claiming that the ac isn’t cold enough that the Edison guy that took off the summer saver box off the ac fan told him the ac needs a Freon boost I’m really  now the  Edison guy is a ac tech the ac was running cold now it’s not working .well the ac tech did a leak test ,pressure test and said it was fine  but it looks like it was tampered with he also said if there was a leak there wouldn’t be Freon in the system still so I payed him to fill it up  since there was  few pounds of Freon still in the system he also asked me when was the last time i serviced the ac  I told him about a year ago .he said that long ago if there was a leak  there would be nothing in the system so after paying a few hundred dollars ,now I get another call saying the ac is blowing hot air .so I send the ac guy back  .the same ac guy said looks like it’s been tampered with.so now I decide to pay for home warranty insurance after the second repair and now  the tenants threatened to sue me.for my fist rental this is a bad experience of tenants trying to scam me and the plumber his freind doing fraud.i later called the water company again spoke to the manager this time explained what going on.he said just tell the tenants to call and give a one time to talk about the bill that I don’t have to be on the account so i did they refused again.

If anything, it's bumped. ;)