Another thing to note, certain renovation costs can be eligible for Qualified Improvement Property (QIP).

In fact, AirDNA is so accurate that many lenders will now accept a AirDNA estimate (for non-declining markets) as evidence of sufficient qualifying income on many DSCR (Debt Service Coverage Ratio) loans and mortgages.

Not sure if you'd qualify.

I have done this type of work majority of my career in both short-term and long-term supportive living environments and have often joked about how I am the "therapist landlord".

Hi Haiden, are you an agent or do you still need to pass the test and qualify?  

However, if the property is located far enough from your primary home, you might qualify for a second home mortgage, which has lower down payment requirements.At CTF Funding, we specialize in helping investors secure the best financing options.

You can see if you can apply and qualify for a loan through the bank but most banks will follow federal standards and guidelines which allow them to sell the home to Fannie or Freddie if they so desire.

However, since this is your primary residence, it doesn’t qualify for a 1031 exchange unless you convert it into a rental and hold it for a period before selling.To avoid capital gains taxes using the Section 121 exclusion, you’d need to have lived in the property for at least 2 years, which you haven’t met yet.

House hacking and FHA loans can help qualify for lower down payment loans, while local banks and credit unions offer favorable financing options.

Lower end tenants mean more headache:More frequent turn overHeavier turn costs/higher wear and tearSlow paymentsLonger vacancy between both the turn over time and finding another qualified tenantBeyond these factors, as others noted, a full unit renovation will cost about 15-20k if you want to do it pretty nice.