This was a 2nd New Orleans cottage we purchased during renovation of the neighboring property.

Then,  do the reverse math at current market price, property taxes,  maintenance, renovation cost,  etc., and see what a building "should" cost.

The lender will most likely look at all three investors, or if one is larger than the others, that person. 

At the end of the day, the overage is minimal considering the level and quality of the product we are getting.Pricing on As-Is UnitsThe units that are being renewed are getting $90 - $190 premium to in-place.Pricing on Renovated Units Two 1x1 units have been leased at $825, which is our ask.

@Alison Rauch if you are planning to buy and hold you may want to do some research on a Fannie Mae Homestyle Renovation loan.

In the future, you might look at more conventional renovation financing vs hard money. 

Our first plan is to buy a larger home and to keep this as a rental property.

Just because rents are supposed to be at a certain price doesn’t mean it is, especially if “some renovation” might be needed.

We've found that other hosts that own larger homes are great guests. 

Some relevant financials are below...any help from the crowd would be appreciated as if like to explore this and do a 1031 in two years.Current rent - $850 Current property value - $75kishNo current mortgage Located outside Houston and appreciating at around 4% a year If tenant moves I'd do maybe $20k in renovations to update kitchen, floorplan and exterior siding but house is functional