If you are turning an apartment, I think it makes sense to sub it all out.

Once they get 1% of landlords revenue I could see it going up to 2% ,3% in the next years .On the related note San Francisco is also proposing an additional tax on businesses for the homeless . https://www.cnbc.com/2018/07/17/san-francisco-to-consider-tax-on-companies-to-help-homeless.html——OAKLAND — As the Bay Area struggles with an alarming homelessness crisis, voters may soon decide whether to force Oakland’s biggest landlords to pay up to help house the city’s most vulnerable residents.Oakland Councilwoman Rebecca Kaplan wants to impose an extra 1 percent annual tax on rental revenue that exceeds $200,000, and use that money to fund homeless shelters, help homeless residents secure permanent housing and clean up the sprawling encampments that line many of the city’s sidewalks.The city needs more money to tackle the problem, and collecting it from Oakland’s biggest-earning landlords makes sense, Kaplan said.

If it’s a deal that makes sense, just be sure to close through your title/ escrow or attorney as is local method.

AFTER ALL of the above, you have to consider if it makes sense throwing good money at a potentially bad outcome.

If you plan on keeping it as a long term investment, it may make more sense just to go with the pre-fab.

It really depends on the value of the property you purchase, whether or not getting rates in the 5s makes sense for you. 

That makes total sense to me. 

Hi Wayne, that makes sense, but in a way it doesn't.

If it cash flows and makes sense as a duplex, no issues moving forward.

Tried in vain to figure out how to add a bedroom on main level  - no go.  9 foot ceilings in basement but big money finishing didn't make sense for flipping.