and run a few scenario's then adjust accordingly.

We plan to go the most cost-effective route initially, and then adjust later as we build more experience/reserves.Thanks again for all the great feedback!

Is it to build up assets, is it to make additional income, is it to reduce your monthly housing spend and save more money, is it tax breaks/benefits? 

If you wait until it’s a rental, you might be able to depreciate the remodel costs over time, which could be a great tax benefit. 

Benefits of Rate/Term refi:  No seasoning with any lenders to use the full new appraised value, no seasoning of the underlying first mortgage that is getting paid off, better rates vs a cash out refinance!

As you move up the scale to higher prices, you get more benefits/services.  

You’ll find more details on how these federal tax benefits work here."

Moreover, if you sell or the tenants want to move and their rents are well below market - they might be in for a shock/lifestyle adjustment/unable to afford current market rents.

Hi Katie, do the tax benefits apply to just Real Estate professionals or could it also apply to regular full-time W-2 employees?

Understand Proposition 13 for property tax benefits, local transfer taxes, and strict tenant and rent control laws.