I will have to ask my Banker if they discount net worth when the majority of it is real Estate assets.This thought process was very pronounced when my Timber partners wife would only look at cash as assets everything else she said was just numbers on paper :)

So I am in the process of acquiring a new property in a good area that is vacation driven in upstate NY.

Buyer is responsible to get the CO".

provides a very detailed response, and I think you would do well to take a closer look at what he says.My opinion is, I would not have purchased a 5/5 for purposes of renting in the first place.

I've been interested in New Haven because theres a bit both B and C-D neighborhood. there are some ghetto parts which like I said I'm fine with I grew up in some rough parts of NYC mid 90's I know how to handle my self in these area. and as long as I'm thorough and diligent with my screening/vetting process in tenant selection, I should be able to find decent people to make my tenants. there is huge working class in New Haven and its seeing slow stead growth. 

What was the process?

So, if a basement has $10k of value and you spend $10k to demo and renovate it to make it worth $18k, you have lost $2k in the process.

If you plan to be there at the property for the entire rehab process, then go for it.

Planning to buy it now, rent it out for 4-5 years and sell it when its time to buy the bigger house.Do you think its financially wise to go through this process before the big house purchase?

I am also in the process of getting these properties into LLC's to minimize liability since these are now quite hefty assets.