Other additional areas to consider is based on how you set up the space and amentities you have provided (kitchen appliances, secuirty cameras/video doorbells, monthly cleaning service, etc.). 

If it was a gift he’d inherit her cost basis and owe capital gains tax upon sale that would have disappeared at her passing.

Airbnb the top half and turn the bottom into a 1 bedroom apartment with walkout entrance and full kitchen.Full cash out: $40kMonthly Expenses: $2800Estimated bnb revenue while house hacking: $2000-2500Cashflow after moving out: 750-1000Cosmetic Flip Expected Equity Gained Minus Rehab Cost: $20k What made you interested in investing in this type of deal?

Which everyone thought was pretty cool because that always meant that you had owned the property long enough to qualify for long-term capital gains. 

The lease specifies that tenant must notify management and owner of any additional occupantsand that they're subject to board review.

Once you've learned the process and gain confidence to run multiple projects, using leverage to scale the portfolio is a reasonable risk.

Negotiations led to a groundbreaking deal with seller financing: 0% down, a 5-year balloon at 5%, and an additional $20,000 at 5% interest upon the liquidation of their business, providing a financial buffer during our transition.

We build these as well as 4 other builders that we have vetted to take on additional capacity if needed.

Also if you were to buy, then sell 2 to 4 years later, the closing costs would likely eat more equity than you would have gained in that time.Just one man's opinion.

You're right I see the additional bedroom info now.