Hello.I have two duplex units in the Cleveland, Ohio area with a market value of $445,000 with two different lenders, and I currently have aspirations of building a 5-unit townhome in the area.

You'll have a balloon at year 20 to settle up with him but if you make it that far the balloon will be insignificant vs. the rents and value of the property at that time.

Although i have positive equity and the value of the house went up I’m breaking even with no cash flow.

Look for both cash flow and value add.4.  

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Do you get the value of it back if you sell or does it increase the potential rental income?

How did you add value to the deal?

Also wanted to buy this property as it was a board up directly across from my first investment property so by improving it I helped the neighborhood values and keeping the area up.

If there is a value add opportunity then you get the option to pivot into a modest flip in the case you are need to sell due to regulations.Hope this helps!

How should I think about the resale value gained from the square footage being finished?