The time consuming part will be in setting up your property (there are always things that need to be done), setting up the listing and getting through your lease up process every time there's a turnover.

I'll take a look, but am not sure I'll go all the way through the process of trying it out.

Now, I am not sure if the banks I have dealt with have just made it complicated to explain to new comers or I did not understand (after repeatedly trying to understand their process) it completely, but it seems too complicated.

I've been interested in New Haven because theres a bit both B and C-D neighborhood. there are some ghetto parts which like I said I'm fine with I grew up in some rough parts of NYC mid 90's I know how to handle my self in these area. and as long as I'm thorough and diligent with my screening/vetting process in tenant selection, I should be able to find decent people to make my tenants. there is huge working class in New Haven and its seeing slow stead growth. 

So, if a basement has $10k of value and you spend $10k to demo and renovate it to make it worth $18k, you have lost $2k in the process.

Planning to buy it now, rent it out for 4-5 years and sell it when its time to buy the bigger house.Do you think its financially wise to go through this process before the big house purchase?

I am also in the process of getting these properties into LLC's to minimize liability since these are now quite hefty assets.

So far just finalizing the purchase process and I believe I've adhered to all of the requirements thus far.

If you plan to be there at the property for the entire rehab process, then go for it.

Me: For new business relationships I insist on a face to face call to help with our DD process and to match faces to names to you ID etc.