Converting to duplex 2/1 and 1/1.

Once the house is complete and you move in, the loan is converted into a permanent mortgage.Because this format is basically a two-in-one loan, you have only one set of closing costs to pay, reducing the number of fees you owe.During the construction of your house, you pay interest only on the outstanding balance; you don’t have to worry about paying down the principal yet.

If I were draft such a document it would probably include some of the following: > Previous historical STR business success/numbers (or other relevant REI experience)> Exit plans for property if they were restrict STR's and ability to liquidate or convert to standard rental> Revenue and Occupancy rate projections using industry 'approved' sites like Airdna.co>Cash flow projects with proof of expense amounts citing publicly available data In the end, the lender wants something predictable as a lease would give them on a standard rental purchase. 

I'm planning to live in the garage and maybe even convert it to a living area. 

I have decided to begin my journey as a REI and want to buy properties and convert them into rentals.

Risks that I see are rent control (already in some places), lessoning housing regulations (there is a proposed regulation that would let any SFR be converted to a duplex, there is already ADU rules that allow an ADU to be added to most SFR, and parking requirements are constantly being reduced to allow more affordable building options), possibly at top of market (which if past history is an indicator even if Bay area is at top of market a new high will be established in no more than 8 years), potentially any number of other potential Landlord unfriendly regulations (no STRs, disallow criminal checks, rent control (already discussed), longer more onerous eviction procedures (already can take a while in some cases), mandating acceptance of Section 8 (already true in some areas), etc.).You evaluate the return versus the risks and determine if the investment appears sound. 

However, I have converted farmland into other uses (e.g. solar farms) so knowing details about the specifics of this real estate sector (AG) may be of interest to some who may see converting to new residential developments or other 'higher and best' uses.

Here is my confusion:We are looking at an older home currently, and considering the idea of moving in and then converting to a duplex.

They are supposed to be converting the Prescott Airport into a regional Airport with regular daily flights.

I gut renovated and converted the unit from a 1 Bedroom to a comfortable 2 bedroom.