You need a permit and the property has to be zoned right.

Otherwise, close with the hard money lender and refi into your FHA loan when it is permitted.

Bill,I think he's asking about going in the other direction, not from 1 unit to multi-unit, but rather from more than 4 units down to 4 units.Zoning should already be in place for the number of units (I hope, or else you might have to limit to number of units permitted by zoning).

Dont think its too high, not for my area atleast, Depends exactly on what you need, but sounds like you need a panel upgrade, $1000-1200, installed heat and air, $3500-4000.. id say $4500+ is about where it should be, assuming this does include everything, permits, ducts, grills, everything!.

If its both, then NC's plan to buy the materials on credit cards, do all the work yourself (assuming you have the ability and won't have permit issues) and sell it.

In general, my schedule of work looks something like this -Phase 0: Blueprint and planning phase, obtain site surveyPhase 0.5: Obtain permits necessary for work.Phase 1: Rough demolition (Don't confuse demolition with the need for a dumpster.

And if it is REO, then you might find that assignment of the contract won't be permitted, if that was your exit strategy.

SFR's are harder to control as they are more spread out.Taxes and maintenance tend to be higher on a per unit basis compared to multifamily 5 units or more.The Dallas market is healthier than many other parts of the country.With SFR's the renter usually gets more space for the money.Also the SFR will usually appreciate at a higher clip per unit once the economy turns around versus multifamily 5 or more.If there is low housing supply and permits for new builds versus more demand for housing then rents will go up.I believe many potential tenants don't see purchasing a house as a smart move in some markets so they just want to rent and let someone else handle the upkeep.I would just make sure that as inflation and commodity cost rises that your SFR are not to far away from the core.There will be in the future a wave of more intown living to reduce waste and cost of living since wages have pretty much remained stagnant.

Newbies- Get lien releases from all parties involved, keep a retainer from the GC until you are 100% everything is done correctly, make sure permits are pulled!!

To the effect that failure to pay is considered a default, and that in the event of default you are permitted to get a judgment and attach a lien to their property.