I have a auto body shop that is located in a D class residential area, it was own by my grandfather, he is getting up in age and he is passing it to me. he hasn't done body work in years, he just have been renting the place out to some guys he know for like $220 a month. the utility are still in his name also. my whole idea is to come in, change things around, do the proper things, have a actually lease agreement written out for the tenants, with the new rate increase and rules, there wont be anymore of the late rent payments, there will be a late penalty, the utility will be in the tenants names,I plan to put a security system on the property, I'm new to all of this , its my first property I'm open to advice, suggestions, ideas on what I should do.

I go to networking events multiple times per month and 8 times out of 10 I never hear from the people I hand my card to... 1 out of those 2 times I do hear back, is in the form of an email campaign I get added onto!

New lenders and programs are added weekly. 

In addition, I would recommend posting your screening/income requirements in your ads! 

However, this home is in Berkeley and I am concerned about destroying historical elements and potential added structural engineering costs that could make the house attractive to a buyer in future years, along with the opportunity cost of construction now versus getting rental income from the house in the next few months. 

For instance, this 10% Vacancy that you are calculating monthly is generally passed along as an added cost to the tenant through a security deposit.

@Josh Oaten   A Short sale is pretty much a normal purchase for a buyer - other than it usually takes some extra time to get offers accepted.  

I would then take out a HELOC to leverage the equity she has built up over the years (current value of the home is about $800k) for a down payment on an investment property or two.I was recently advised that putting the house in a trust, rather than adding my name to the deed, and putting myself as a beneficiary would be smart for estate planning purposes and give me access to commercial loan options as well as residential.However, I want to know if there is a major difference between the amount I would qualify for on the HELOC if I were to apply as a Trust or as an individual.I would assume either way the bank would be looking at my income to debt ratio and make a judgment that way.I appreciate the feedback!

Thanks for the extra push!

He does the weekly rent bc it allows him to check on the property and at the end of the year, he gets 1 extra month of payments ($38,480 vs $35,520).