Purchase price: $461,000 Cash invested: $76,000 5 BR/3BA Two-story home originally purchased as primary residence, but later converted to rental property.

Id like to convert the 2 car garage to 2 additional bedrooms that i can rent out.

This neighborhood was required to convert from well/septic to city water and sewer. 

If they underpay the payment, they are charged a penalty and the inflated amount is converted to additional equity rights for investors that are worth more than the underpaid amount.

I recently (January) moved out of Lake of the Woods in Orange and converted that property to a rental (my first).

Ultimately, as we get older we convert wealth, or RE equity into assets that produce cash flow.

I was considering ripping out the carpet (has some tough stains), installing new vinyl wood floors, repainting the walls, do a thorough deep cleaning, and converting the loft room back into a bedroom (putting up the top half of the wall and putting a door in), and then finally rent out the townhouse.

But when you drive around Alameda and you see the worse looking houses and many were converted to multi unit.. the worse looking ones were Jawads.. basic slumlord I guess.  

What my wife and I ended up doing is remodeling the house with an addition and converted the garage into an Accessory Dwelling Unit (permitted and rentalble guest house with separate address and electrical meter).  

So unless you go under contract before the 28th you will need to do FHA or find an alternative FREDDIE MAC HOME POSSIBLE® BORROWER INCOME LIMITSOur Freddie Mac Home Possible® offering serves low- and moderate-income Borrowers looking for low down payment options with flexible sources of funds.Currently, for all Home Possible Mortgages, with the exception of those secured by Mortgaged Premises located in a low-income census tract, the Borrower's qualifying income converted to an annual basis must not exceed 100% of the area median income (AMI).