Interested in getting some extra income with converting the extra space in the basement into a rentable unit.Basements in a one-family home can be lawfully rented only if the following conditions are met:Compliance with the Housing Maintenance Code for minimum room size.There is a minimum ceiling height of 7 ft.The walls, as high as ground level, must be damp- and water-proofed if HPD determines that subsoil conditions on the lot require it.The basement is occupied by one family and does not include boarders.Every room must have at least one window.The bottom of any yard or other required open space cannot be higher than six inches below the window sill of any required window in the room.

I have been working with my contractor about 23 years now and when we get involved in a project I go to the site at least 4-5 times per week.

Quote from @Mani Sundaresan: If I’m financing a rehab project with a hard money loan, do I still need to issue 1099-NEC forms to my contractors—given that the funds come from a loan, which isn’t taxable income?

I have flipped 30 houses, including having 10 projects going simultaneously, one of which sold for $1.8 million.

In real estate its messy and there are always repairs and capX projects that seemingly pop up from time to time.

if its a true condo you only buying the airspace.. so any defects in constructin the HOA has to pay to fix.. so the ceiling work should be on them. 

I’ve done a couple of fix-and-flip projects in the past, both of which were financed through hard money lenders.

They usually tend to lipstick it with carpet,paint, changing door knobs and kitchen knobs, new ceiling fans etc. 

I would have appreciated someone pointing out how to more accurately project cash flow. 

I've used those before for shot-term funding for renovations/rehabs in projects.