Factor in the expected life of major improvements and their replacement cost.

@Ernie Sturzinger I guess to answer your question...not taking cash from the deal is perfectly fine and even a wise decision...this means the building needs to generate cash flow...you just need to leave it in reserves or make planned improvements...long-term equity is much more important than monthly cash flow.

When the house needs work, I work in comments that I'll be improving their collateral to justify a lower down payment and rate.

The idea is go 50/50 on the down payment and any improvements to the property (likely kitchen and bath upgrades).

Your credit will improve over time, (I don't know the exact circumstances) and maybe it's better to wait a year to see where this all sorts out.....?

Do I subtract all improvements(costs) from the sale price.

Nor does it factor in your ability to force appreciation by improving operations and raising NOI.

@Jay Hinrichs Yes sir, we would never EVER have guessed that adding improvements and riding the Nashville market wave could lead to that final number.

My goal is to buy a home or townhome that needs a little lipstick and live in it while I do some cosmetic improvements and rent out the rooms I do not.

Obviously the goal is to maximize the refinance amount, so what are some improvements people like to make to increase the value of the home?