And you don’t mention whether the heating system is forced air or a boiler with radiators.

However, if you run the numbers, make sure to include any rent increase that you could expect to get from offering air conditioned units.

@Greg DickersonIf I were to get a hard money loan for say 750k for purchase, and the value of the building is more with some improvements, could I do a cash out refinance through a bank for the new, higher, appraised value?

I just have a lot of equity in my home from the improvements and I would like to pull that equity out and pay off the personal loan I used to help with the remodel. 

You have to purchase it and then substantially improve it to qualify. 

(adding 2 floors complete re-purpose) The builder claims that the improvements will more than make up for the poor cash flow by improving the value of the property substantially.

Assuming that the market and neighborhood where the property is located is steadily improving. 

4) Asheville may be the Air BnB capital of the southeast.

That’s how I’ve had so much success with STRs - Whenever I’m entering a new market, I just find a couple of properties in that market that are crushing it, and I copy them (while also finding 1 or 2 ways to improve upon their offerings as well)

He should have talked to you about bonus depreciation and how to categorize your expenses and improvements during renovation.