@Anita AhujaIf they are buying the deal at a 5.4% cap rate and the Year 5 cash on cash return is only projected to be 7.1%, how do they propose to get to a 15% IRR?  

What are the thoughts on how proposed tax reform will impact real estate investors?

Hi Wesley,Here's a proposal (attached image) based on what I can see from your post:1) Expand the Bonus Room into the Bedroom to create the new Kitchen 13'x8' or 14'x8.Current Bedroom becomes closet (valuable storage space, and you get to keep the access door leading under staircase)Current Kitchen becomes Bedroom2) Move drain and water supply to where the new sink is3) Mudroom becomes Entrance, close off redundant door4) You could remove the door Entrance/Bedroom and widen its opening5) New Layout is a nice small but comfortable Studio with proper entrance, decent separate kitchen and good storage spaceWorks?

The Declaration, Covenants, ByLaws, and Rules are ALWAYS the first step in addressing an HOA/COA matter.That said, I wonder if you can provide us more information on the community or complex this is proposed for.

While Congress enacts taxation legislation, the IRS writes enforcement and criteria.  

Just want to make sure I understand you correctly.Also, what questions have you had to deal with when proposing this type of structure?

If you message me I can send you the contact information for an attorney in Mpls who partnered to write the MNvest legislation. 

It would all depend on the scope and cost of the proposed improvements, how much skin in the game they think you should have in it, and if they feel the character and charm (or whatever) is not compromised.

The proposed duplex definitely needs some work, but also looks like it has potential, but that will definitely require some rehab dollars.

As a method of real estate financing and an alternative to traditional bank mortgages or hard money, he was proposing the following:Private lender puts up the capital to purchase the property (100% financing)Buyer takes title and gets a mortgage from the private lender at 1% for 30 years.In addition, buyer pays the lender 3% of purchase price up front.