What is the property value?

With careful planning, attention to detail, and skilled craftsmanship, our goal is to enhance the property's value while preserving its unique character and charm.

With rates at this level I an not sure places will cash flow at 80% loan value. 

My hope is that the clientele we bring in won't completely trash the place but I realize that is just wishful thinking and that people, regardless of income/ what they are willing to pay, can behave like animals (I was in the auto industry before becoming an attorney and the things I saw walking trades will forever haunt me). 

The reasons are 1- less competition in commercial2- greater property types lead to more opportunities for “value added”3- commercial net income projections include expense for property management, 1-4 unit residential usually do not4- greater “universe” of properties to buy allow higher minimum return standards Of course residential is MUCH easier to successfully deal in, and with reasonable leverage has small downside risk, so I 100% agree that most investors should stick with residential.  

I would go 2 bedrooms, it will have more value as a regular rental, airbnb and future appreciation.  

For example, a 10-year-old carpet has outlived its normal life and no longer has any value. 

also, let’s say prop value/purchase cost is 500k brought in tax year 2023, can bonus depreciation be applied to take max tax deduction on year one ?

How did you add value to the deal?

I can do much of the work myself and increase the value of the property significantly more than buying a house that needs less updating.