Most areas you need a permit to have taken up and added costs.

They want a chunk of cash to buy a beach house or something but they also like to hold a smallish note for extra income.

That can work.I'm wondering if you can somehow creatively do this deal where you pay an extra $5000 for this new condo, but have $5000 held back by the seller for you to do some kind of upgrades, but then just use the $5000 to pay down your original condo so you can get to 80% LTV in order to drop the PMI insurance and refinance at a more realistic rate.Is that HOA monthly? 

Normal additions like what you're trying to get quotes are from 120-200/sf out the door, at 200/sf, you're in the high part, that's 80k, allowances for extra ordinary fixtures shouldn't be above 5k.

But so long as it doesn't devolve into negative cash flow, AND the funds are for MORE wisely bought cash flowing / added equity potential properties - why not? 

Many thanks for adding me to your group and for your time , JJG-

Please ad me!!!"

The original closing date in May was missed and I was told the buyer was asking for 300-400K in "extras" and we were negotiating with them.  

You could also purchase an extra General Liability Protection as well to offset any concerns you have about possible liability.

There could be added risks with renting to young adults in college, but those risks extend to any potential tenants.