In addition, your loan is typically amortized over a shorter term… often 20-25 years, instead of 30 years like a typical personal mortgage.  

It is a beautiful place, but if we can create some additional capital while we have to live where we're at, it will only open more doors for a potential property purchase.Thanks, again, for the input!

No there isn't an additional leasing fee.

In addition, the windows are probably 30yrs old so from my understanding I might as well replace those as well which is another 15K out of pocket.ORDo I use the $$ and replace the kitchens which are very out-dated, which I CAN raise rent for.No this is not unusual.

You can add additional documents as Exhibits at the end of the lease if need be, but everything should be listed in the lease and all parties will need to sign that document.

In addition to the tax on your appreciation, you would also have to recapture any depreciation taken on the property since you've owned it if you do not do a 1031.

My estimate of what you’ll be paying for the additional $235,000 is 7.9%.The math works like thisCurrent annual interest on $485,000 @ 3.625% is prox $17,500Annual interest on $720,000 @ 5% is $36,000Difference is $18,500 for $235,000 is equal to 7.9%.the math isn’t exact because we haven’t accounted for amortization or the difference in term of the new loan vs the existing loan.  

An SBA 504 (10% down, generally Prime -2% and 25 year term) can be used for the real estate portion.I don't know if that's what you're looking for, but it's at least an option.PS - look for an SBA lender that's in their Preferred Lending Program (a PLP lender), which shaves ~60 days of the time to close and one that sells their paper on the secondary market, just like a mortgage.Those who keep the loan in-house often add overlays, which are additional requirements over and above SBA's

If you consider doing private lending, you can get most likely 8-12% or more a year.I understand that owning the property will come with its additional benefits, but you may want to consider some other options like properties closer to the 1% rule, minor value add, looking into wholesale deals, or assuming a loan from an on market property just to name a couple options. 

Hey BP community,When you're running the numbers on a flip or BRRRR  especially one that involves layout changes, additions, or ADUs  how are you estimating the cost and time for architectural drawings?