Investors are finding that Chattanooga cash flows, but the 3/4 unit MFH might be hard to come by without building one from the ground up or converting something. 

While I've never attempted to do this in Jersey City, I have inquired about doing it I'm Kearny (both Hudson County).I attempted to convert a 2 into a 3 (floors same as yours) and I was told I'd have to conform to current building codes if I wanted to do that.

If NYC starts discussions about regulating below 5 family buildings, I am going to convert all my buildings to Condos and just sell them out.

I’m weighing the option of selling versus a cash out refi (which would be less, roughly $20k, because I’d have to convert from a va to conventional loan).

I’m weighing the option of selling versus a cash out refi (which would be less, roughly $20k, because I’d have to convert from a va to conventional loan).

Also if I were to convert it back to a residence at some point, would there be any recapture?

We have a two-bed studio unit behind our larger single-family that has been converted into a business.

LoC has a 10-year draw period, and is then converted to a 10-year loan.Now, let's say the borrower decides to take $10k out.  

My debate is the following:1) Convert the ADU into 2 bedrooms / 1 bath. 

The challenge with a heloc is that the rates can change on you and unless you plan on paying it off in full you will eventually need to convert it to long term debt.