Quote from @Cody Jiosa: So, we live in Oregon and have been finding super good deals but for one reason or another we always seem to hit a wall, whether it be not enough capital to fund the fix and flip loan, Or the deals that would work, get swept up too fast, and a few other inconveniences.

If I purchase the home my plan would be to convert the basement to it's own dedicated unit by installing a interior wall which would separate the main floor from the basement so the exterior entrance would be the only way to access the basement with it's own dedicated path on the outside of the property.

Underwrite today’s rent.If the property is already rented, use current rent.If it’s vacant, use the actual verified program rent for its current bedroom count.Not “maybe you can get 3-bed pricing once you add a wall.”Not “market comps say you could get more.”Reality only.2.

Treat “potential rent” as noise.If it’s not rented today, and if the housing authority hasn’t approved it, it’s not real.We only use:• Current rent (if occupied)• Verified Section 8 payment standard for THAT bedroom countNot “after you add a wall.”Not “after a full rehab.”Not “after the market improves.”2.

We regularly add walls to create an additional bedroom, instantly increasing the rent ceiling for Section 8.4.⁠ ⁠

Quote from @Jaron Walling: @Rob Bergeron I really like that quote about comfort being the enemy of learning.

@Matthew RichenFor a 4-bed unit in Shaker Heights, a reasonable ballpark for a full interior repaint is usually in the $2,500 to $4,500 range depending on the condition of the walls, ceiling height, number of coats needed, trim work, and whether there’s any patching or repairs involved.

Never drill, cut, or anchor items into walls, ceilings, or floors without Landlord approval.b.

My quick and dirty due diligence, for what is worth: Jon seems to have had a long and successful career on wall street. 

Once we opened walls, we realized “rough” was optimistic.