That involves investigating all of the associated costs of the conversion itself, the time to complete that conversion during which no rents will be coming in but there will be the usual carrying costs, and the potential reduction in today's cost the landlord pays for the centralized utilities, and even the possibility of having a difference in rent.

It can be a mix of the 2 or 3 combined but there is usually one that stands out above the rest as the driving factor.

Even then, I usually wish I hadn't)

There are other things to watch for, maintenance issues that will push your NOI down to zero and into negative territory in a hurry.

The maintenance is usually lower because they see the property as their own and they tend to keep things up on it.What are your opinions on buy and hold properties verses lease options?  

An Umbrella policy provides an additional limit of Liability coverage (usually in increments of $1,000,000) that responds if underlying policy limits get exhausted in a covered claim. 

So,Mike, you say that every deal you do, is usually arranged through seller financed terms?

Usually, the terms are worse than if you could get a conventional loan but they are very flexible.  

usually not.

If you find something out there higher than 70%, it's not a conventional mortgage so likely doesn't have the nice rates & terms that are usually associated with conventional loans.Conventional appraisals on 1-4 unit properties will use the Sales Comparison approach, so even though you've nearly doubled your income, you're still going to be bound my recent comparable sales.