As a young investor the up front fee is a little much for me to swallow at $4,000.

The better informed investors have heard of the imputed interest issue.

Is it better to go with a property manager considering I won't be in the same city?

Does it get better or worse?

@Randall AlanHi Randy - thank you so much for your feedback and advice.

I don't know about how assessed value is determined there, but tax assessed values are typically not accurate and are usually much lower than actual value.

You can only lift properties can so much. 

In the longterm your better off buying a solid property, 3-4 units if you can qualify for it, and getting started vs looking for the perfect deal for years that never comes.

Hi Ian,The best way to get this done is to refinance into a hard money rehab/construction loan.Not sure how much equity you have in the house but the ratio would be as following.75-80% * (Value of home+Cost of build/rehab) = Total Loan AmountWe would payoff the initial note (+ closing costs if loan amount exceeds construction budget & payoff), the rest would be in an escrow account for you to draw from as you complete your project.I would love to connect and discuss further on the details of this scenario!

There is so much complexity and risk involved.