15k, and that's a lot compared to how much they would typically pay (i.e. 0).Create a detailed scope of work, if you're going to run a rehab you need to understand the process of the construction occurring.

If you automatically assume risk with out knowing the details you might miss out on some really good opportunities.

For complete details, please reach out to a tax professional.- For pass through businesses (Sole prop, LLC, S-Corp, Partnerships), up to a 20% deduction is available for qualified business income.  

It may just be that the seller wants too much and there is no solution but I was hoping investors with more experience than myself in this area could provide some insight into how they would value this and how much of a hit to cash flow would be acceptable in exchange for future potential.The details:4-unit purpose built building in an average residential areaCap rates for 1-4 unit properties range from 6-10% depending on quality, location, conforming vs non-conforming etc.Asking price $520k, dropped from original $550k and has been on market for a few monthsRents are ~$34,000 and should be ~$48,000Expenses (excluding maintenance) are ~$9,000 - This puts the asking price cap rate at ~4.7% (not including maintenance)- We estimate that at asking price it would be about -$260/month in cash flow and break even at a PP of ~$450k assuming our typical 10% of rent for maintenance- We estimate the building would be worth around $530k at market rentsWe were thinking the cash flow neutral price would be our best offer, but their indication was that they are looking for close to 500k. 

Contacted my realtor who arranged the showing and gave me the background details.

Also how much do you guys think it will roughly cost to build a 300 sqft studio like structure with a kitchen, laundry, and bathroom. i appreciate the help, let me know if more detail is needed. below are the guidelines for the adu in accordance with the city. 

Tried posting the event details but BP moderators kicked it off. 

Send me a PM with the details.  

I am very apprehensive about refinancing my house and it seems that not too many people talk about the minute details of it. 

I am very apprehensive about refinancing my house and it seems that not too many people talk about the minute details of it.