It sounds like the newer tenant is in the "wrong" but I never like making assumptions.

Don't take the word of a Realtor; talk to an insurance broker that knows what they are doingWhat are your financing assumptions? 

I want to know the answer mathematically and assumption based, before I make the decision. 

., if the first floor used to be residential it might be easier to go “back”).Parking also frequently comes into play as the assumptions/requirements for store/office parking are usually a bit easier than for residential (depending on the nature of the business).You might be safer to assume you can put one big unit there rather than two smaller units, for purposes of your analysis.For cost, it really depends on what’s there (how much has to be removed before you can start building up).

My assumption is that he would have to find a US bank that does business in the Philippines and is able to send an appraiser to the Philippines to pull comps and appraise its value.  

I'd try it for a season and see how well your assumptions hold! 

Again, not knowing anything but making the above assumptions. 

I understand you bought it for 49K VA, so my assumption is you owe about 35K on the loan. 

If assumptions are changed and leverage means non GSE debt, my answer changes. 

I'd love to chat with some people currently in the BRRRR game around here to see if my initial assumptions are in line or if I am way off.