When looking at this you should focus first on the ARV though you may not think on selling that will give you an understanding if you will have a return After the rehab.Then you look at the cap rate, this is important for the long time investing and It will depend on what you are looking for (Long Term return, cash flow).An last is cash on cash that will help you to get an idea on how your money is working.Dallas is a hot market for investors and these are the numbers that I am seeing:ARV: ~80% (Ideal this Number should be 70% to 75%)Cap Rate: ~5% to 6% (Ideal this Number should be over 7%)ConC: ~4% (Ideal this should be 6%)Trying to get the ideal number could take you a while.MF with 2 to 4 are completely different than 6, 8 and above.

How long it takes to be financially ready is different for everyone.

3Rd time posting it because 3 different forum categories.I already have an attorney and have spoken with a couple others, as well as mortgage companies.my time is valuable to me, unless you have some sort of experience with anything related don't leave a comment.

Tap the equity, if you need to, in a different way.

I love this idea, but would first talk with your ciry to determine the building regs.Have you done any comparison to see the cost difference than just building a typical multi-unit property with small units?

@Cameron Daste15 or 30 year mortgage it won't make a difference. if you buy the house for $200K and have a down payment of $50K then your loan is $150K. after renovations you sell the house for $250K then the title company pays off your old note (loan) for you and then you get a check for the $100K

All of these would come with a different approach. 

I've heard different opinions from different attorneys.  

@Adam TyerEvery market is different and unique when it comes to ADR and regulations.

While $500 is a lot, if current rent is $2500 or $800 also makes a difference.