Plus most hard money lenders will require a fair market appraisal.If you plan to rent, you already have that documentation plus the appraisal will provide estimated rents.

I know the 3 BR unit is under market but he's a long time tenant and does a lot of work for me. 4.

It helps determine if the project will meet the desired profit margins.CoC (Cash on Cash Return): I find this particularly important for fix-and-flip projects, as it measures the actual cash return on the cash you’ve invested, giving a clear picture of short-term profitability.Cap Rate (Capitalization Rate): While more commonly used for rental properties, it’s useful in understanding the potential income from a property relative to its price.IRR (Internal Rate of Return): This is a great metric for longer-term projects or those with varying cash flows, as it takes into account the time value of money.Some investors might overlook metrics like AAR (Average Annual Return) or EM (Equity Multiple) if they’re not as relevant to their specific strategy.

Hi @Arya Chen you may have better luck if you post in the Classifieds section of the forum specific to the areas you're looking in because those forums are location specific!

Market OverviewThe Los Angeles office market is comprised of 210.4 million square feet in twenty-one geographic concentrations ranging in size from the 38.9 million square foot Downtown submarket to the Mid-Cities submarket, which accounts for 1.8 million square feet.

However, but is it market to enter into an agreement with a property manager on just a lease transaction?

I ask you to go to the top and read the first several posts and specifically my first couple of responses.. 

Hello Ilya,Where are you looking at purchasing your 1st property.When converting a property from a single family to a multi family, you will need to check on the zoning requirements, depending on your location, not every location has zoning.As far as lending goes, it is far easier to finance a single family up to a quadplex, than financing 5 plus units, the DSCR Market for 5+ units is extremely low right now, and there are few if any lenders in that space.For financing 1-4 units, there are Millions of dollars chasing those loans, so you can easily obtain long term financing, at rates between 5-7%.Please reach out if you have a property identified, and I can help you with financing options.

Should I just go back to getting the property rented out completely and then market it for sale?

>Understand the cost/value of completing an ADU projectIn my market ADU additions in single family zoned areas are getting valuations far below the hands off cost of the ADU addition.