Virtually all cities will prohibit this type of thing.

The Appraiser should always request this type of info from the property contact.

I had a plumber go over to give me an estimate for converting a half bath to a full bath and he called me back claiming that the plumbing inspector wasn't going to allow him to tie into the type of pipes I have and I was going to have to re-pipe the whole house.  

What made you interested in investing in this type of deal?

If for example I'm creating a B class single family rental, I want to meet EVERY "expectation" tenants would have of a rental of that type.

In order to calm your partners nerves, you may consider exploring a more adequate asset type.

Looking at the underwriting rules for FHA and CONV investors can only own a certain percentage of the total # of units in order to be eligible for this type of financing.

What made you interested in investing in this type of deal?

What made you interested in investing in this type of deal?

Honest opinion - this seems like a great opportunity for you with 70% LTV at 5.5% for a property this type/size - I would be very very careful if you need to get the other 20% as a relatively new investor - someone willing to lend the remaining 20% could easily take advantage or come up with terms that could cost you - definitely depends on the further info - but tapping the equity of your current rentals and taking down the full 30% equity stake in this acquisition would probably be the best bet