We'll eek out a 10% cash on cash but will convert a half bath to a full bath to increase the value substantially.

Since 1031 is tax deferral, I assume the gain is calculated with the likely substantially lower basis from the pre 1031 property acquisition + additional cost over the years.And yes, recapture all depreciation ( on both prop before and after 1031) make sense.

With rent demand being so high, it can be hard to make the numbers work, and it is so easy for property managers to fill units, that there is little justification for taking on the risk of dealing with Airbnb issues.To illustrate, I will give a personal example.

Financially my full-time job is our main income as a family.Job is demanding.

The demand for affordable, shared housing is strong here, so filling vacancies shouldn’t be a major concern.

The home is above average for the area, but rental demand has been tough.

Demand that they chargeback and see what happens.

The rent-to-price ratios here make cash flow realistic, and there’s a lot of revitalization happening that adds appreciation potential.Detroit’s population is officially growing again, and there’s strong rental demand, especially in neighborhoods seeing more development.

For distressed properties, focus on markets with growing job sectors, good schools, and lower crime rates, as these factors drive rental demand and long-term growth.

That neighborhood has low inventory, but very high rental demand and the tenant class is typically pretty solid.