So they legally added a back porch.However, the actual building now has a back "room" which is now a functional master bathroom - so they enclosed the porch, and may have extended the porch, probably raised the floor elevation to match plus a bunch of other things.

This means you become subject to mortgage origination requirements, you may be exempt but I tend to doubt it as most "investing" in notes are not truly passive investors, they are actively engaged in a business function.

I am at roughly 60% LTV with my holdings combined.

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All expenses are split proportional to ownership, as well as all income generated.Furthermore if you combine your own personal and IRA funds for this purchase, you will be unable to get a loan to finance the balance of the purchase as it's illegal to use an IRA asset to collateralize a personal loan.However, if you have enough funds in your IRA for a 30% or more downpayment, plus some cash reserve, your IRA could purchase the property directly, without involvement of your personal funds at all, by securing a non-recourse loan if additional funds are needed.

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Reserves are typically a function of age and condition of the units.

Your total debt service combined is $1,574. $2,200 - $1,574 = $626 net cash flow; $156.50 profit per unit per month.If you get a deal under contract similar to this example, it will not be hard to find the money to finance it.

The illegal addition off of the garage will have to be demolished and reconverted into a functioning garage.The positive part of the conversation is that he said it should take less than two weeks for permits once plans are turned into the city.

Just spent the past 2 hrs going through the search function ready on previous threads and there seems to be a lot of doom and gloom for investors in the area.