Unfortunately, their demo already included the garage doors, 6 windows, a half bathroom, staircase, the exterior siding, all the wall and ceiling insulation, and they poured new footings and framed in the garage opening.

I ran comps out to a half mile and it appears the most recent sales of the most similar homes are 80-90k each.

I didn’t raise the rent for the first few years, yet since have been inching it up. 

@Charlie Moore  If the house burned down, the insurance should pay for replacement in which case you need to rebuild the home to the same specs.The only thing you could do is perhaps change the location of the house on the land and see if a second home could be built in the back half. 

6 in one hand, half a dozen in the other.Using your cash will technically lower your COC return.Using the HELOC will cost you more in interest.

@Luke Simonetti Not sure base on your anecdote, but relative to the 'consulting with the spouse' part... are you guys presenting to only one half of the decision making team?

It has to be a heck of a deal to cashflow at half steam.

It’s usually either first months rent or half of, so if you plan for annual turnover that’s either 4.2 or 8.4% per month to account for For financing, even if they do seller financing you’ll be hard pressed to find someone who is comfortable with receiving nothing up front.

If you start in summer you will lose half of that year on your tax returns and it will make it seem as your job doesn’t pay well.Of course you would need your employer to falsify your start date, but most businesses will do to help their employee achieve his homeownership dream.The fact that Canadian banks can’t verify tax returns makes it very easy for mortgage fraud. 

Very few do not become tenants.Typically we get 70-80+ people contact us via Zillow or Apartments.com, we speak to about half, eliminate most of those, take a few applications and have  fewer actually do CC and BG.