Contemplating a purchase of a property with a main house and a smaller back house...I would like to create an equity position, but have no idea how the property would be comped?...

Contemplating a purchase of a property with a main house and a smaller back house...I would like to create an equity position, but have no idea how the property would be comped?...

Our in-house attorney is the one who brought the issues up of unlawful utility arrangements, that was my first encounter with the matter.

I have news for you, unless you are a professional you should not even contemplate doing anything you have no clue about.

Sell the feature of having a sandlot volleyball court.Tell them it's ready to be tilled for their vegetable garden.Tell them pets are okay outside.Tell them the neighbor stole your sod, a simple furniture arrangement and they can look next door. 

What % equity is fair given the above arrangement?

Another option I am contemplating is to finance and keep it as a rental and reduce reno to around 15k.Also I have a question on financing flips.  

Ours states:ALTERATIONS.Tenant agrees not to alter the premises without prior written consent of Landlord.All changes made by Tenant must be reversible and property must be restored to original condition at end of tenancy, unless other arrangements have been made with Landlord.

Of course I arranged the walkthrough, worked up my rehab estimate, made an offer and got it under contract for $27,500.

I think one of the biggest benefits to them in this arrangement was to have a guiding hand throughout the whole process (aside from the great buy & hold deals we picked up :) ).