Although it was in good condition, we earmarked some funds for further improvements, including repaving the driveway, installing a new privacy fence, and making select upgrades and repairs inside the units.One of the standout features of this property is its prime location near the vibrant downtown area of Bryan, with easy access to restaurants and shopping, which added considerable value to our investment thesis.Initially, our plan was to utilize the duplex for Airbnb rentals.

I would end their lease when able, upgrade, and find new renters.

So I would need a good interest rate and provide upgrades that would yield positive ARV along with pay down and appreciation to provide 20% equity for a refinance?

But that's in the nature of capex, you are upgrading your assets.

Hi Ayyoub Research is the key, Conduct thorough market research to understand why the competing property is listed at a lower rent, Consider any improvements or upgrades that could enhance the appeal of your property to potential tenants, If you're unable to match the lower rental rate of the competing property, consider other incentives to attract tenants, such as offering a shorter lease term, including utilities in the rent, or providing additional amenities.Hope it helps.

@Amy Healy The power of a 1031 exchange is that you are able to leverage your entire gains and upgrade to larger propery, newer property, or better located property.

Too many tenants will tell you a rental is perfect, then they move in and start demanding you upgrade appliances, paint the walls, replace the flooring, add a deck, etc.

Now there are some improvements (kitchen remodel, bathroom remodel, upgrading windows) where that flips on its head, but it's still something to really plan through. 

To evaluate investment prospects, including positive cash flow, potential for appreciation, and value-added upgrades, do a full property study.5.

TH folks are much more eco-conscious and interested in down-sizing, reducing costs, being environmentally-friendly and in many cases, mobility.