The garage has been converted to a studio with full operating kitchen and shower.It has been appraised at $122k.

Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset)Liability: the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.A liability is defined by the following characteristics:-Any type of borrowing from persons or banks for improving a business or personal income that is payable during short or long time;-A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services, or other transaction yielding an economic benefit, at a specified or determinable date, on occurrence of a specified event, or on demand;-A duty or responsibility that obligates the entity to another, leaving it little or no discretion to avoid settlement; and,-A transaction or event obligating the entity that has already occurred@Angelique Diaz I get where the Rich Dad idea comes from but I think we are forgetting that he wrote that book not as a REI text and more as a midst shifting primer for those that have little to no financial education.

You could buy and sit on it and let multifamily cap rate compress converting from a buyers to a  sellers market and occupancy and rents were rising.Now with multifamily you have tons of investors buying multifamily at the top trying to squeeze yield and hoping their optimistic projections pan out top of the cycle for that asset class.

The borrowers qualifying income converted to annual income must not exceed 100% of the Area Median Income for the location of the subject property.

I’ve had clients purchase SFH and convert the basement into a full apartment AND create a garage apartment over the detached garage.

I'd convert the building into res. suites, just don't know how to get around the old bank vault.

@J ScottThe books are useful, but when you still have to convert them to useable spreadsheets on your computer.

Just make sure that you're converting that newfound knowledge into action, and that action into dollars.If you get started now, you'll be thanking yourself later.

We are considering buying a SFR and converting into a duplex with a renovation loan.

134k- Converted duplex built in 1920’sSemi Updated Average Neighborhood/Ave Schools1600 Sq Feet1 Bed Unit upstairs and 3 bedroom downstairs 20%- $26,800 down payment PI Payment $592Taxes-$333Insurance- $91Total Monthly Cost-$1017Rents $1550Total Cash Flow-$533Cash Flow per door - $26620%- $26,800 down payment $7000 max in Rehab workTotal cash needed $33,800Annual Rents - $1860075% Less Variable Cost- $13950Interest Paid annually $5620Rent less cost minus int-$8322NOI/Total Cash- Cash on Cash- 24.62%250k- Duplexbuilt in late 80’sSemi UpdatedGood neighborhood/good schools 2400 sq feetTwo 3 bedroom units 20%- $62500 down payment PI Payment $1035Taxes-$395Insurance- $108.33Total Monthly Cost-$1539Rents $2200 Total Cash Flow-$660Cash Flow per door - $33020%- $62500 down payment $7000 max in Rehab workTotal cash needed $69500Annual Rents - $2640075% Less Variable Cost- $19800Interest Paid annually $9843Rent less cost minus int-$9956NOI/Total Cash- Cash on Cash- 14.33%