We had to stipulate in the purchase agreement that he was to stop all work immediately because he was "remodeling" one of the units and ripped out a load bearing wall to open up the kitchen to the living room.

Also watch out for rules that would impact your tenancy i.e. no rentals with short term leases or leases less than 2 years, or no renting out individual rooms, or no rentals to individuals with different last names.  

You can maximize income this way....without the risk of tenants trashing the place or filing bankruptcy and squatting for free.People are always asking me what kinds of tenants we get....and they always think the worst because of rooming house mentality.  

More insight of the current numbers (considering a 4.5% interest rate for the new loan)House 1Monthly payment(PITI+HOA): $1,700/moPotential rent: $2,300/moCashflow w/o management company and allowance for repairs(house is in great shape): $600/moHouse 2Monthly payment(PITI+HOA): $3,964/mo (if offer is accepted but I believe the case study is valid for any other house)3964-600 (cashflow)-1700(mortgage first house)----------------------$867 I have to come up extra with every month.In this particular house there is also a room with bath that could be rented for about $800/mo (efficiency, as we call it down here).

I used to live in Chelsea and paid ridiculous rent for my studio after my company stopped paying for my relocation.. just bought a 2bedroom in the middle of union city, old brick building, less than 150k and its berautiful, got full NYC city views and rented on of my rooms for 900/m, so now im living free. 

I'm looking at a multi family house, both units have two bedrooms living room kitchen, house is in good shape and there is a nice back yard.

@Elliot Lamson just do what I do and am currently negotiating If you profit has room reduce your assignment fee to pay the 3% and offer the seller more but advise the purpose to the price increase is to pay off commissionexampleif you are at $138K( 3% is $4,140 )And you have $15K assignment fee, Offer to pay $142K (3% $4,260) instead and advise the seller that they will still net the $138K agreed upon but the additional $4K is for the commission. or same something along the lines of to net $138K I will give you more to compensate for the fees attached to the sale.This way the deal is a win, win situation  and you are not asking a buyer to pay $10K more when he is looking for the lowest deal possible. you here a property is $153,000 then end up paying 3% plus closing cost easily $10K extra that i will not pay. 

Steve Vaughan She's not moving to have a fancier house...they need more room, for baby.

If there aren't two ways out of all of the bedrooms (common with basement rooms), then you might have to install an egress window, or quit calling a particular room a bedroom.You mentioned the fireplaces; why aren't they safe? 

I usually save about $100 to $200 off brand new ones, sometimes 50% off show room models that are discontinued.