During that time, I'd complete the $65k renovation, and by the time the option is exercised, the property would qualify for conventional financing.My question is around the financing structure at the time of purchase:I want to make sure I can recover the $65k I put into renovations at or around closing.

Most of the other four in Grant's batch don't survive that same exercise.

I'm not competing with REITs.Focusing on economic occupancy, not just physical occupancy.

Many value-add opportunities come from operational problems rather than physical ones.

A common approach is a standard lease with a separate option agreement, where the tenant pays an upfront option fee (often 2–5% depending on the market) that gives them the right, but not the obligation, to purchase within a defined window.Sometimes part of the monthly rent is credited toward the purchase price, but that’s usually tied to them exercising the option so you’re not just discounting rent if they walk away.

Hi @Bonnie Griffin KaakeTraditional firms (like yours) have historically charged $5,000 to $15,000 because their overhead includes manual "take-offs" and physical travel.

But in my experience the property itself plays a huge role in whether the operation runs smoothly or becomes very management heavy.After a few years of trial and error I started evaluating potential opportunities using what I think of as an “anchor” approach.Instead of looking only at the house, I evaluate four layers:• The city itself• The specific locality within the city• The neighborhood dynamics• The physical layout of the houseWhen those four anchors line up, the model tends to run much more smoothly.

Physical Site, Access & Market Reality CheckAlways walk the site and take pictures / drone aerial.

Be aware, especially for multi's they will usually at some point physically walk the property for general overview of hazards/conditions, and appropriate Fire Extinquisher or Fire Hose placements etc.

Electricians, plumbers, HVAC technicians, welders — work tied to the physical world.In other words, many of the youngest workers in the economy are already adjusting to where value is shifting.For decades the economy rewarded access to knowledge.