The preexisting rental agreement is way under market value for a 2/2 at 917 Sq ft.

They had changed the digital thermostat setting to celsius instead of fahrenheit

You will subject to the lending market at the time near to the balloon expiration.I would negotiate for the recurring option to extend the loan an additional year at the cost of a 0.75% rate increase.

familiarity with the market, value-add, chance to make something out of nothing.

For those of you trying to “Time the Market” or trying to figure out the “Perfect Time to Buy”, either because you believe home prices will drop or because interest rates will drop (which they will in the very near future), I have a scenario for you.Consider these two scenarios, in both cases you have the EXACT SAME Principal & Interest Payment1.

Redfin says its value could be 150-160k, but I doubt that’s accurate, unless the market heats up with lower interest rates.What factors should I consider?

However, improvements generally need to be capitalized and depreciated over their useful life unless the amount is below $2,500, in which case you can utilize the de minimis safe harbor to deduct those costs in the current year.

Safe option probably depends on your experience and motivation and maybe the market where you buy. 

This deal was discovered through diligent market research and networking in the Linden, MI area.

I am confident in handling the construction as I have experienceWhat really matters to me is that are there margins in this market to make money from scratch up?