Here are some stats:  Purchase - 260k; ARV 500k; House needs a little of everything and a lot of some and to get max ARV, leverage current square footage add a bedroom and bath, making the home a 4/3/2; with two master bedrooms.

Appraisers look at square footage, number of beds, baths, location etc.

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

The real question you need to ask is if you want to be tied to the SBA rules, remember you must owner occupy the property at least 51% of the square footage for the duration of the loan, it is very strict and not for investment or speculation on real estate.So the question is, do you have plans to lease it to others (not your company) in the future?

Any red flags I should I be aware of.4.

.- Code becomes a bigger and costlier deal -- all of your properties will be squarely considered commercial and NOT residential, so when you pull permits to do substantial improvements you'll *get* to install a sprinkler system, etc- (speculation here) More susceptible to property tax hikes As for me and my house, we have chosen to buck the conventional wisdom and stick to SFR and small multi's (doubling down on what we know and are skilled at) until we can jump to more sizeable mutlifamily properties.

Guarantee there were warning signs and red flags everywhere before this tenant was accepted.

@George Red I think its important to sit down and figure out which items you will do in the future.

So maybe 1-2 buildings a year are deep in the red whiel the others are humming along nicely.

I coached my girlfriend (now wife) to buy a 1800 square foot house in Redondo Beach for $599,000 with 10% down in 2003.