@Breeya JohnsonWhen evaluating markets for real estate investment, there are several crucial factors to consider.

Since the payment was deposited into your account on 1/6/2025, it would typically be considered income for 2025, even though the tenant paid it on 12/31/2024.However, if you use cash-basis accounting (which most landlords do), the key factor is when you physically receive the money, not when it was sent or owed.

I'm not in that market so I can't speak specifically to it, but to me the deciding factor would be what the surrounding units and area has. 

They are mocking these up with interest only loans and factoring back in the tax deduction as if you qualified for the tax benefits of a real estate professional and factoring in the diminished first year property tax (since its not a full year).

.• Use some equity from the sale to make this transition smoother.I’m torn between maintaining our current home as an asset and buying  a new smaller house to use as a rental after we move back in versus simplifying and focusing on a single upgraded property Considering factors like market trends, potential equity growth, and quality of life, which path do you think would be most beneficial?

The biggest factor will be how long you plan to own the property or when you think you may refinance.

If you’re looking at retrofitting to separate heating for each unit (like furnaces or mini-splits), you might be looking at a higher upfront cost, but it can shift utility expenses to tenants and improve your NOI.I’d factor in boiler age and efficiency when analyzing deals and if it’s near the end of its life, negotiate a price reduction or a credit.

One of the major driving factors for increased premiums is the carrier's requirement for higher replacement cost limits on file for buildings. 

See, when building a portfolio, appreciation is key, and the #1 factor that will dictate things.

Compounding on one another sure that will have a big impact on the market but there are a lot of factors at play.