We currently live in a 1250sqft 3bd 2 bath bungalow with basement and double garage. It’s come time to upgrade and rather than sell which will cost quite a bit I’d like to rent it out. Here’s my initial breakdown:$129...

@Michael HarrisIf you have already have a loan on the property; you may have to find out if the mortgage becomes due when convert from personal name to trust or LLC.If you purchased the property recently; keep in mind the owners title policy gets voided in most cases; when perform QCD.For single member LLC you can do pass through as single member LLC is part of regular tax returns. 

Please let me know if you think this is a good deal.It is a 2100sf single family which I want to convert into a duplexEst rent for both units $2600Cash Purchase price $240000Repair costs $50000Monthly tax after repair $550Ins. $150Vacancy 5%= $130Capex $200Property management 10%=$260Repairs 5%= $130If I refinance and cash out at 70% (assuming it is appraised for a little over $300000) and 5.2% interest rate monthly mortgage would be $1100Please let me know your thoughts.

If you might move out in 3 years you either need to sell or convert to a long term rental, and unless you get a great deal it probably won't cashflow well as a long term rental in Charlottesville.

I think I could convert it into a spa and rent out rooms to barbers/ hairstylist/ etc.

When you call the city, ask them if there are any zoning requirements around converting it to a garage that you need to adhere to.

It isn't so much the down payment for House 2 (you will use whatever tool is available to you ie FHA, 203K, etc.) as it is your lender continuing to lend on your risk profile (asset vs. liabilities, salary, etc.).I converted my House 1 into a rental and my tenant signed a 2 year lease, which I showed to my lender.

LOL I'm working on number 4 that's kind of a 4 plex converted over from a single family residential. 

With respect to flips, an example of this could be converting a 2BD house with a sunroom into a 3BD - something like that. 

I’m trying to find out how to get a converted room permitted as a 4th bedroom.