Hi @Ethan Rolnick  nice to meet you!!

If the garage is not built to support the weight of additional floors or is not adequately reinforced, it may not be suitable for conversion.3.

We always set a weight and breed limit on dogs. 

This could be a huge lawsuit in and of itself.However, you have indicated to me that it is not your desire or intention to pursue any type of legal action against these people unless they double down and respond in the same negative tone to this response.

I also appreciate the "reality check" tone of your message, as it can be easy to get excited and overly optimistic about new opportunities like this.I am new to CA MF RE, so I don't know a ton. 

and 126K ARV puts you well below the median price for the city...same as in Pittsburgh - there are definitely safe, quiet neighborhoods where you can buy a property for 60K (although it's likely going to need a major rehab) and neighborhoods where you definitely would NOT want to buy a property for 60K.i have not been able to find 80% LTV - is it the same lender (you?)

However, running out of capital to invest is not the perfect argument it's crafted to be since the reason we all went into real estate as an asset class to begin with was that we could always partner with banks to fund our deals.The magic of only coming up with a fraction of the cost ensures you are always going into any deal with a partner, except the bank is always the passive partner that is never going to need a K-1 or an offering memorandum.

This could be a huge lawsuit in and of itself.However, you have indicated to me that it is not your desire or intention to pursue any type of legal action against these people unless they double down and respond in the same negative tone to this response.

Check the appraisal approach used.For small multis, the income approach should be weighted heavily.At $3,650/mo rent, even conservative cap rates often justify a higher value.4.

For rents, use the income approach: verify with two PMs, cross‑check Rentometer/Zillow but discount for aspirational pricing, and weight unit layout and parking over raw sqft when comps are sparse .