@William Walker  Because it is the Annual interest rate, applied to the Balance. 

What would be a valid portfolio discount to apply to the total portfolio given the lack of marketability, illiquid and long-term nature of these holdings and how do you come to that # for a discount?

Has he applied for tenancy?

That money is not yours to touch until the lease is terminated and only then can it be applied to expenses authorized by the law.As for the amount of deposit, you should require each tenant to increase the deposit amount to match the monthly rent.

Some of the best I have read are:- The Hands Off Investor - Brian Burke- The Best Ever Apartment Syndication Book - Fairless and Hicks(I realize that the above books are heavily weighted in syndication, but feel these contain valuable information that does apply to MFHs)So I ask the group, what books about multifamily investing have you read that have made a day to day impact on how you have acquired, financed and/or managed your multifamily properties? 

@Assad Oskuei you're going to want to talk to the Cranston building department.My understanding is that ADUs in Rhode Island are limited to the current owner and only for family members, so you wouldn't be able to AirBnB or rent it out, and the ability to have someone live in it wouldn't automatically transfer to a new owner unless the new owner applies for (and qualifies for) having the same in-law unit.ADUs in RI are much more limited than in other states, for example California.

Not saying it won't with you as this is an individual thing not something that would apply to everyone. 

For quick and dirty method, apply the 50% rule for expenses.If this is a distressed asset, give them a cap rate before and after stabilization.

But do the same rules apply if the refi is from conventional to portfolio/unconventional loan?

A couple or two friends decide to apply.