And if you include those future capital expenditures into you static proforma, then the real cash flow will not look as it currently does.Now - if you would underwrite to IRR, which requires you to commit to an exit time-frame and price, include all of the economic losses which are sure to happen down the road, and structure your pay relative to achieving those hurdles, then I would change my mind instantly.

Christopher Giannino is right, unless you find a perfect deal where you pay less than market price and have instant equity in the house which is rare these days.Barry Rupisan

If you have the right plan, the right dwelling and the right location, you can make anything work.

Greetings all, I’m considering a home renovation loan to convert my garage into an Accessory Dwelling Unit (ADU).

You will want vacant dwelling insurance with is different than what we use for rental properties that are occupied. 

In some areas, there are restriction on how many non-related tenants can be in a SF dwelling.

no show for bids or first day is an instant fire.

Were there major capital expenses, both dwelling- and infrastructure-related?

I'm Chris Gordon & I created atenant verification software called ValidiFI.io & it allows propertymanagers to instantly verify their potential tenants by extracting credit,background(ID + facial scan, criminal, eviction), employment, and income(directpayroll login + Bank acct. deposit verify) all processed within seconds at nocost to you.

I know some of these have insurance through their mortgage company (don't know what kind) but, do I need any other extra insurance like Rental Dwelling Policies?