They won't sell at market (ARV or FMV) in their existing condition - pricing needs to reflect the property's condition.

Do you mean that by adding the potential rent income my total income will increase and the loan terms should reflect that? 

Hi @Jacinta A.If she is not allowing you inside the offer price should reflect a complete gut job.

By being in a neighborhood about a mile away from campus, closer to the highways (where this opportunity is) seems to reflect lower RE prices and also lower rents so net-net you seem to end up in a similar place at least from the pro formas we've looked at. 

Technically, you would need two years of filed tax returns reflecting that income so they could calculate the income.  

The contractor is working on the property under a general building permit, but I would be curious to know if I need to get any specific permit to make sure this increase in sq footage gets reflected in the property records, so when I go to refinance the house I get the ARV based on a higher sq ft. 

This way you exactly know where you stand with rent, and can adjust your numbers to reflect it.

i think it's great to set goals, but it's better to analyze and reflect on the past year's goals...anyone can say, "i want to buy a skyscraper"...lol, but what'd you do to get you there??

Do you think there results actually reflect the true picture?

I also made the mistake of assuming that past prices (i.e. comps) would reflect future prices.