If you pull permits and renovate, both your property taxes and insurance are very likely to increase, causing your cash flow situation to decrease.

If anyone has apartment sector specifics on potential loan rate resets, please post the details.From Avison Young, about the 2023Q4 Raleigh-Durham office market report, "Class A availability has reached a post covid high (27.3%) as demand for office space slows and occupiers decrease overall hiring." 

So I decreased my debt by about $40k.

The result - DECREASING ANNUAL NET OPERATING INCOME & DECREASING RETURN ON EQUITYI am not saying investors should not invest in Texas.

This will decrease the amount of your out of pocket expenses.

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

It also returns significantly more money while you wait for the next deal (with the risk of the value of your holdings decreasing when you need it).Feel free to message me if you have any questions.  

I've played around with the numbers so I can see the change if the purchase price goes up by $50K or if the cash flow decreases. 

One way or another, however, the investors must work to pay down loans, increase rents and decrease expenses wherever possible.

@Patrick Philip You will be looking for opportunities to increase income or decrease expenses.