Start with your existing ecosystemYour management portfolio is a major asset.

The overly-simplified DSCR version has only come into existence in the last handful of years for a mass-marketed single-family investor product.

I’m not trying to rush — I just want to move forward intelligently instead of spinning my wheels.Any perspective (especially from people who started in the last few years) would be hugely appreciated.Thanks in advance 🙏— Vincenzo You’re ALWAYS better off investing locally, where it’s easier to:Learn the marketNetwork to find dealsNetwork to find contractorsBe more hands-onDriveby property to keep tabs on itNetwork to find a decent Property Management Company (PMC)Next best location is somewhere else you lived, where you have an existing network of family & friends to help you as accomplish the above list as needed.If you invest OOS, your biggest challenge won't be finding properties to meet your goals on paper, it’ll be successfully outsourcing all of the above.The biggest mistake we see OOS investors making in our market, over and over again, is not fully understanding Neighborhood/Property/Tenant Classes and how they impact your probability of success!

If the General Partner commits fraud, the "bad boy" carve-outs in the loan would allow Freddie and Fannie to go after the KPs for any amounts lost. 

@Pierre Guirguis - I think it depends on how much of your existing capital is currently "tied up" in the BRRRR.

Have they committed to a test drive of the idea, even in one building? 

i have been in a tough financial state starting 2025. i committed to a bad fix and flip and lost tens of thousands of dollars.

Getting a new LLC is just not that hard, and its much cleaner than trying to add to your existing one, especially if they would have to buy in. 

The right solution depends on the specific layout, travel distances, stair enclosure and rating, window size and sill height, and how the jurisdiction applies IBC and the NYS code for an additional dwelling unit in an existing building.Whether it is worth it comes down to a simple feasibility and ROI check, the all in cost and timeline to legalize, versus the increase in stabilized rent and appraised value.

And the plan is to convert an existing Airbnb I own (and have run as an Airbnb since 2019) to PadSplit.