Not sure if I should be asking a question on my initial post.

I was initially interested in Memphis, but after reading up on various websites, forums and blogs, it seems the best days to invest in Memphis are behind us.

Maybe you can initially move them into Room A knowing that they will move to room B once room B is done.The basement can only be included as a room if it meets fire code... i.e. has big enough windows for egress.  

Sounds like an opportunity to get some work done on your house, or a charity project for someone in need.

My initial goal is to sell to an owner-occupant and not have this as a rental.  

@Wade Stahle:Identify the exact closing date of your initial purchase - should be on HUD-1 form, you should have it with your closing docs. 

So if I were looking for a turnkey property in a good market, I initially look for the CAP rate before I decide to pursue it further.

I would call that middle class at least, and that's assuming 0% interest on that initial $3.5M.

In your initial post, you didn't say what you had been reading about or even what it was you were trying to do. 

Our initial plan was to get there buying 12 properties over 10 years with a combination of all cash transactions and leveraged positions, but I wonder if we are being too conservative.