If you can get a landlord convinced that you can deliver a great house for a great price by converting the doghouse in front of you, then you make a contract of sale for delivery of an as will be built product with the sale agreement going into escrow before the start of construction.

It's easy to get confused the way the numbers are thrown around.If you convert the dollars to seconds:1 million seconds = 11 ½ days1 billion seconds = 32 years1 trillion seconds = 32,000 years!

House has a converted garage into a living space so that accounts for 400-500 of the square footage.

Certainly, you want to convert any cash you receive instantly into something else.

Then I remembered that we converted the garage to living space, so the total square footage on this project is actually about 1700 sq ft (not the 1400 I posted above).

If he can afford to convert to a Roth, he can avoid most of the taxes.

Here's the really simple analysis:Rent: $7500 (10 2br units)Expenses: $3750 (50% rule)NOI: $3750Desired cash flow: $1000 ($100 per unit per month)Max payment: $2750Max price: $413,346 (7%, 30 year)Subtract off the work that's needed, and the cost to convert the 1BR and studio units to 2BR.

I converted that to an ARV of $270 for a "quick sale".

I was thinking about converting it into a single family.

They'll still have to convert it to green backs to pay taxes and such.