The house is paid off, and I'm trying to see what my best option is to do with it.I would like to do a full gut renovation on all 3 apartments, but I would like to be able to see if it's possible to convert the cellar to be a legal apartment and get a CO that states "multi-dwelling" instead of "2-family".Does anyone have any experience with this?

My contractor was supposed to do a full gut renovation (bathroom, kitchen, floors, everything!).

Revisiting this thread as well (seems like it keeps getting revisited every few years, haha) @Charlie Shew This is my gut instinct.

there is literally no way this would only cost 16-20k to fix LOL. wishful thinking. i would call this a full gut based on the pics and use $65/sqft for guts (even that is sometimes not enough but it's a place to start). so if this property is 1,000 square feet, we're looking at a $65,000 reno give or take. what did your contractor say it would cost?

Actual data is helpful and more accurate than my gut feel. 😉  

I think that data should guide our decisions, even if some people may rely on their emotions or gut sentiments.

Hey @Justin Williams,I'll start by saying even the most flexible loan scenarios will look at credit. how it relates to the loan process, however, will differ depending on which loan type you go with. my gut punch reaction in this is that your credit score is more about limiting your LTV due to the subject prperty being a multi-family, or potentially driving the rate up so that you no longer qualify (rates are higher on MF than on SFR typically)....it also could be about how your lender is calculating (or not calculating) the rental income coming from the different units.

I really appreciate hard data to form my own “gut instinct”, as ironic as that may sound, I really like to process all the data points (hard data and facts like your list, similar news article and posts, and multiple trips to the area meeting people both locals and visitors to hear their input and insight). 

a good deal for a SFH flip would be the buyer being ALL IN at absolute max 80% of the ARV (including the PP, renovations, assignment fee, closing costs), but a lot of investors would say it has to be max 75%, 70%, maybe even 65%. that said, shoot for 65%, and know your renovation costs. i've used $65/sqft for a gut reno, and until proven otherwise i'm assuming it's a gut job, BUT that PPSF is not always accurate, sometimes there are unique issues with the property that would drive that number way up. it gives you a place to start, though. 

Many times, if your gut has already led you to a point where you're considering doing something, the downside is less than you might originally anticipate.