The 2 family home can be converted into a 3-family.

I have been searching the forums and haven't found an answer to the following.  I currently have an SDIRA LLC (checkbook IRA) and invest in real estate part time.  I have a full time W-2 job.  I have 2 questions:1.  D...

When you say you will cash flow $400-$500 a month, go ahead and convert those numbers into the bottom line, net profit.

For example;deal #1 - 4 unit apartment building priced at $29,000. after figuring in expenses, and a 25% vacancy rate it has a cap rate at 28% (32% if we can get it at our offer of $25,000)Red flags - we were originally looking at this building in a package deal with a house converted into 3 apartments.

The depreciable basis when I converted it to a rental in 2012 was much lower that what I originally paid.

When she signed a new lease starting 1 June, I wrote the requirement to deposit the $ into my new bank account at USAA into the lease, as I was converting all my primary accounts from PFCU to USAA.

I ended up converting this to a duplex to create larger units and hopefully fill it with longer term tenants.

After those 2 years my plan is convert to a 15 year conventional mortgage, lease out the unit I fixed up and keep it as a rental and do it again at another Duplex. 

In fact, they were apartments at one point, converted to condos, and now are in essence reverting to apartments.  

The previous primary residence was converted into a rental property and a lien was recorded against that rental property for the HELOC.