We have a few clients who've done that, and you don't even have to have a kitchen down there to be attractive to visitors. 

The Fannie Homestyle loan looks like a pretty attractive option for this purpose.

And if that's the case, offering the 70/30 deal for a projected 18% LP IRR with a lower risk profile should be more attractive than the 30/70 deal with the same projected LP IRR.

Excited and happy for you and your friend.You are young so everything that comes your way may be appealing or attractive.

The attractiveness of ascending to this level is that the ground-up game unlocks a playing field that is largely less crowded, with (generally) higher return potentials, and the "newest product" advantage when it comes to leasing.

Sometimes, builders market a lower HOA fee while the community is built out to attract buyers.

This will reduce your overhead AND it will allow you to attract better tenants.

Hi @Hyung ku Kim, it sounds like a potential issue might be that you are attracting the wrong type of prospect with your advertising... i.e., you are getting folks that are looking for a less formal arrangement (who i can imagine might gravitate towards a room-in-a-house situation), and who are then scared away by a thorough application.  

I allow pets in my duplexes, in order to attract more applicants.

Our current goal is to GROW.Coming out of Covid our focus has been to stiffen our application process so we can attract good tenants, keep the units in good shape, and ensure rent is paid.