The biggest question here is does he occupy the property as his primary home or is this an investment property?

If you are using a loan structured for a primary residence, that loan requires a Homeowners insurance policy, not a commercial insurance policy.  

A non-profit organization that donates to projects with the goal of building net worth for individuals, investors, and corporations is taking an unconventional and philanthropic approach.

What is your goal here in this market?

Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsI hope BP helps you achieve your goals!

Right, I wasn't clear enough.My main goal is to purchase properties in areas that I believe will develop in the future and the value of the properties will increase.In order to increase the cash flow (to cover current expenses) I am checking the possibility of doing arbitrage 

Hi Bigger Pockets, There is a Granny Special in my wife and my neighborhood that we are considering renovating for our primary residence.

For starters, I highly recommend starting by tuning in to the BiggerPockets podcast, you'll find this to be beneficial in reaching for your goals.

Sorry to bust your bubble, but in Cali you cannot be an owner/builder unless it is your primary residence AND you cannot do more than 2 in 3 years.....

Im on a variable rate as i knew i would want to refinance eventually.do i:1) take the 50k refinance and go to a fixed rate2)renovate the unit thats leaving and offer to pay the guy to leave and renovate both (maybe try and convert to a 2 bedroom)3) do nothing and just keep renting it outMy goal is to make this full time and not just hold on to a few properties for when i get older.thanks!