Contractor · North Conway, NH · Member since 2018 · 59 posts · 48 votes
6y
I personally look for distressed single family homes that could be converted into two units. Usually they are older homes that have a lot of square footage but the numbers don't make sense as a single family. They also need to be on town water and sewer.
Your looking for distressed properties where during the rehab process you can force the equity. During the refinance process you can get all of your money back out. My goal is to get all my money back or at least in the next 18-24 months. Anytime you can add value and get a better return that’s the game.
I try to find properties where roofing and siding are in decent condition. That alone could cost $15-$20K. Kitchens and baths provide the biggest return. If you can find two bedroom homes that are at least 1000 square feet and you can concert to a third bedroom that’s a $15,000 return.