The reliable team is absolutely a success component.

Samantha Klein a few components are considered when qualifying for a commercial loan.

a reverse 1031 would not work for us in the current scenario but sounds like we are good and will work to get the replacement properties closed after the relinquished property (assuming we can get the stars to align) . 

If I make a poor investment decision, the bank still gets paid (of course on the upside, the better my decisions, the greater the profits I keep because the lending costs are essentially fixed).The time component to bank financing is also frustrating, most especially the appraisal process.

DD is always the key component. 

Don't want to overpay and buy just to buy, but we all have to give a little on this market it seems.Glad you have a value add component with the 3rd bedroom conversion. 

The other components for you to determine is if the house (investment property) will self sustain the mortgage you plan to take on, your income, and your other monthly debts/commitments. 

@Jeff Greenberg  Profit is not a component of the market value calculation. 

I have had some properties where I had to terminate the contract because of these main 3 components.

If the availability of delayed financing is a critical component in your decision, get tight with your loan officer or mortgage broker before you purchase the place to ensure you are qualified.Home is gutted and in the middle of a rehab when the appraiser shows up.