Low capital investment, simple conversion to "add" 4th bedroom, multi-family zoned lot, 150ft to light rail transit, across street from open space How did you find this deal and how did you negotiate it?

Spent ~50,000 to add a more functional bathroom and full kitchen to convert the space to a more residential layout.

It is difficult in this area to find affordable, yet decent, commercial space.

@Rory Locke This sounds like a great space you have found, and hopefully will be able to put it to great use.

Just trying to figure out the best space to put future income.I do want to invest outside Galveston soon!

Here is my deal analysis:PURCHASEPurchase Price$120,000.00Down Payment$24,000.0020.00%Closing Costs$3,240.00Mortgage$437.00INCOMEMonthly Rent$1,200.00EXPENSESProperty Tax$267.00Home Insurance$85.00Vacancy$50.004.17%Maintenance & Repairs$60.005.00%CapEx$96.008.00%Water & Sewer$80.00Gas$0.00Electricity$0.00Total Expenses$638.00DEAL ANALYSISNet Operating Income$562.00Monthly Cash Flow$125.00Cap Rate5.62%Cash on Cash Return5.51%So when I first looked at this deal, I saw there was long term tenants (so lower vacancy), the living spaces of the property were actually very nice for a MFH, and the price was attractive.

he later caught me off guard to get some details on what I was doing in our work spaces. 

The spaces vary is style and size and are on the 2nd floor of the building.

This area is and has been a great investment location because of the TECH industry that surrounds the Space and Rocket Center and Redstone Arsenal just to name a few places.

Personally, I would bite the bullet and give the increase only bc of the use of the space.