Permits may be needed for bedroom or bathroom modifications, especially if plumbing, electrical, or structural changes are involved.

A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.

If you have it in emails etc. you could have a position - but as another poster mentioned, giving up $100 a month in rent to only paint two rooms is very very generous so I can see how they thought there would be more rooms involved.

@Jonathan Cooper - Sounds like a short-tax year is involved.

If the same people are involved, it doesn't matter.

By the time I got to that point the cost and time involvement was so high I decided it was a distraction to what was already working.  

Don't get involved at all in domestic violence - who stays, who goes, taking sides, etc.

@Tom EvansCongrats on the potential STR in AZ.As for a shared well agreement, they can be tricky (even when it does not involve STR usage).

Recommend:1) Letting the tenant know they need to buy traps and use them.2) Waiting until S8 gets involved.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.