Commercial properties are measured on NOI or Cap rates. 

Transforming SFHs into multi-units and targeting 2-4 units for value-add potential is a smart way to build your portfolio, especially if your goal is to qualify for larger loans down the line.If you're aiming to hit the 5-unit mark and unlock better financing options, here's something to consider:Leveraging BRRRR Strategy: You’re already thinking about the refi route, which is key.

That's good news, as that is exactly what we aim to do.

I would aim @ renovating the property and increasing the rents.

As if posting on BP is the only measure of RE investor knowledge and experience and credentials.  

I own a lot on Gause Blvd. in Slidell, LA which measures 30 x 280. 

My application at Aim loan for a delayed financing exception was denied because I bought the property from my property managerwhich according to my lender is considered a non arms length transaction and according to Fannie Mae/Freddie mac guidelines such a transaction must only be arms length.     

If building a LTR portfolio is your ultimate aim, consider how each potential flip will help you get there.

Today, if you wait a little longer, appreciation alone has picked up almost a third of what we were aiming to force through a high-effort rehab.

It helps determine if the project will meet the desired profit margins.CoC (Cash on Cash Return): I find this particularly important for fix-and-flip projects, as it measures the actual cash return on the cash you’ve invested, giving a clear picture of short-term profitability.Cap Rate (Capitalization Rate): While more commonly used for rental properties, it’s useful in understanding the potential income from a property relative to its price.IRR (Internal Rate of Return): This is a great metric for longer-term projects or those with varying cash flows, as it takes into account the time value of money.Some investors might overlook metrics like AAR (Average Annual Return) or EM (Equity Multiple) if they’re not as relevant to their specific strategy.