This is a really bad practice & unfortunate & unless sophisticated & accredited investors like myself start demanding change it won’t happen.Ultimately before a subscription agreement is signed & funds sent in its up to the investor to do better due diligence & work to increase both their experience & deal flow!

Value with Garage To You = Market Value of Garage + Market Value of Smaller PropertyConverted Value To You = Market Value of Larger Property - Market Value of Garage - Cost to Convert Garage (including the time value of money)If converting does not increase the value of the property more than not doing it then there's your downside, too much time spent doing something not valuable.If it is still worth doing and if the comps call for covered parking, maybe you can add a nice carport cheaply in a way that doesn't cheapen the fresh new house.

If it's higher than $850, increase your price. 

Hi all,I am new to BP and just starting to research how to start becoming a buy and hold investor under extremely limiting circumstances and was hoping the BP community could shed some light on the best financing strategy to use for my first few properties.Current Financial SituationA little background on my current situation: I am 28yrs old working in television in NY ( making roughly 55-60k a year- yes it is brutal) I just bought my first primary home 2 years ago in Williamsburg, BK to lock in how much I’m paying for housing year over year in a place where incomes don’t increase as fast as rental prices (2 bd for 340k (this is an HDFC which is how I got a home for this price in an area where the median price is 1.5 million) ) so obviously my DTI is extremely high at almost 60% with no other debts besides my primary home (I also have a roommate who pays me $900 a month for her room which helps with about half my total monthly housing costs) (had a great mortgage broker that really helped me wiggle in to my first home)I now have about 75-80k in equity in the home and access to a family trust with a similar amount of money in it and was looking for the best way to turn buying an initial first property all cash into the ability to buy more properties( out of state of course- looking at different areas in the country from PA to TX to TN to FL).

I'm hoping that would imply there's room to increase the rents via improving the quality of the units.Thanks again for the response and educating us on what DSCR & CAMs are about and how those figure into the numbers, we really appreciate your input.Cheers!

And the well will likely need to be fracked in order to increase the water in it, again, not sure of the price of that, but it doesn’t sound cheap and it doesn’t really add any value.

This is probably more true if you had increased the loan amount, but ask.Be careful with a complete refinance since it would place your new loan behind all other loans.

One thing is to see it in charts another is in person.On my first trip I spend hours driving around and zoned in a neighborhood University area at the time I saw monorail to downtown was being build in that area and knew it would only increase the value of properties.I like being close to major Hospitals/ Universities feel there will always be a demand even during a recession

Maybe you can negotiate a modest rent increase, but unless your taxes & insurance go up then you really don’t need to raise the rent.

Increase of NOI of about $100K in two years Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?