It also offers a chance to shift into something more passive, reducing the hands-on management that seems to be more of a hassle now that you’ve moved.That said, the rental income potential from your properties is worth noting, but there’s a limit to how much you can boost your cash flow, especially after already making significant upgrades.

The seller wanted a buy-back, and we added a clause that reimbursed not just for upgrades but also factored in market appreciation tied to the improvements.

The property seems to be in good shape and will requirecosmetic rehab.  5/3 house 2600 SQFTWe will need a new AC, Kitchen upgrade, bathroom upgrade, flooring, painting, andcarpet upstairs.  

- The tenant may be granted permission to customize the property such as painting the property to their liking or upgrading flooring or customizing bathrooms which can create more feelings of a sense of ownership in taking care of the property.- The rents are usually $100-$200 higher than the average rental amount which can create a higher monthly cashflow.- Tenant takes care of most of the fixes and repairs for the property, except for large ticket items that should have been taken care of before the tenant occupied the property.

Do certain properties need upgrades in order to maximize rent potential?

It did need some upgrades, but I'm definitely out of pocket a lot on this one to turn it back into an STR. 

Also, check if there are incentives or rebates for upgrading to more energy-efficient systems in your area. 

Quote from @Timothy Lawrence: Hello All,Today is the day I decided to upgrade myself from being a lurker to being an actual poster.

It all cash flows like a gold mine until the roof needs to be replaced, the main line goes, or you get your first turnover bill and need to upgrade a kitchen. 

Cash flow, even that which looks good initially, tends to get eaten up by the real cost of the upgrades needed to keep the property rented.