Now that the cap rates have expanded, many have seen their values decrease and so there payday isn't as good.

Any one suggesting keeping a tenant below market or slowly decreasing your monthly losses has zero business scenes.

I was not sure since I would be taking a slight decrease with the cash flow initially, it was making me somewhat timid.  

That has caused a slight decrease in homes sold. 

This is a value-add Class C deal with significant rent upside for renovated units, as well as upside potential in decreased management costs.

In fact it may even create some more tax return complexity but should not increase nor decrease your tax.LLC are mainly used for liability and asset protection.

Even if you're not cash-flowing, you are going to have a significant decrease in your mortgage!

@Paul Bergagna  no I’m not saying that the conversion would decrease the value of the property as a whole.  

There are credit forums with all of the tips needed to increase your score (keeping accounts open, increasing credit limits to decrease debt ratios, disputes, etc).

Our plan was to make his mortgage payments for several years while we rent the place out, in which time the house value would appreciate while the mortgage balance would decrease, creating room for profit in the end.The value of the property at the time was about $105,000 and he owed $101,500.