If you're thinking about turning your garage into a bedroom with a bathroom to make some extra cash, here’s the scoop based on my 20 years of experience: You'll need to budget for design and engineering costs, which typically run between $2 to $3 per square foot of your total property area, not just the garage.

Assuming you are using the "cash" method as a majority of 1040 folks do for businesses, property tax is deductible in the year that it's actually paid.

If you buy good deals, in good locations, hold the property, and maintain cash reserves, you will rarely lose.

My company had the ability to cash out a mortgage at a moments notice although to be fair if we had a run on the bank we could not have covered all of them.

Hey @Fadela Zaoui - if its a court ordered sale... unlikely sellers would entertain seller financing, but the answer's always no unless you ask :) I recommend working with your broker to figure out what the sellers really want - sounds like one of the sellers wants to cash out so they may not be the person that wants to do seller financing BUT the other seller may be open to it.You could also potentially look at a joint venture option where you just buy out the seller that wishes to sell her portion, and partner up with the other equity holder who now gets to retain their piece of the pie. 

You seem to be focused on cash flow based on the emphasis placed on the 10 Cap in your pos but you also describe the neighborhood as "shady" which I interpret to be a lower barrier/ at best "C" neighborhood.

Since it won't be cash flow in this condition and may run into loss it may offset my rental income but hoping to build equity and have another investment in my portfolio.What would you folks suggest?

He also wanted to cash out on several of his investments and fully "retire", hence reason for selling.

We did the real estate tour again 3 months ago but with the amount of cash we have, the home we want to build will be about $14k per month so I projected that it would lose money. 

Use it to see how much cash flow a property could generate.Market Research Mastermind: Become an expert on the area's rental rates, vacancy rates, and appreciation trends.Renovation Reality Check: Don't underestimate the cost of fixing up a property.Price is Eye-Catching, Value is KeySure, a low price tag might grab your attention, but remember, true success comes from finding properties with exceptional value.