Additionally if she gets denied the ability to foster more kids and my house gets denied I think she is going to want to leverage the problems with the house and try to get her money back. 

However, my additional concern is whether this would mean there is capital gain tax as well.

While leveraging with loans can raise the potential IRR, it also creates additional risks. 

Have they had trouble selling, was it inherited, does it include additional tracts of land, or solid construction traits not advertised. 6) Try to acquire with $5k or less down, and payments low enough to sustain long term in case of long vacancies.

Additionally I was considering targeting properties in $100K range, that way I could be rehabbing 1 and have enough cash to buy the next deal, the spread on $100K properties is not as big as though. 

You want to feel confident that in the way the lender determines value, that the addition of the garage will increase value with their methods?

Hi All,I came across a 5-plex that is zone as R5 and the seller is saying that there is a potential to add 1 additional unit making it into a 6 unit complex.

There's a ton of articles out there about additional lease addendum's you need to have which are not covered in a standard lease. 

Hey all, I am considering a 4000 sqft 2 family house with a full basement that I am looking to turn into an additional legal unit.

On most of our rehabs, we add SQFT with an addition or by closing in a garage or carport (perfect example here: https://www.biggerpockets.com/forums/311/topics/55...).