Kisaki, you want to utilize a hard money or Bridgemount product to acquire the property and finance the renovation budget.

I would say it's not worth rocking the boat for less than $200 additional per month, when you look at what you're overall ROI. if it's really that big of a deal to you, maybe consider canceling the pest services that you know are being utilized and would facilitate not having a roach problem, so that you can save that extra money every month and have that money back instead of raising the rent price to the tenant.I have seen this in many different places, Metropolitan, rural and otherwise, and it doesn't necessarily matter with the market rent is you're not always going to get that.

I work on a ton of Padsplits in the Atlanta market and it is tough for a 4 bed co-living property to be much more profitable than a long term tenant factoring in additional utility expesnes, padsplit fees, and additional property management expenses.

That's three months of mortgage and utilities, the cost of flooring, and the cost of painting.

Here are the key numbers:Potential purchase price: Mid-$400k rangeAppraised value: Estimated at ~$500kRehabbed comparable properties (comps): ~$580-600kMonthly PITI (with 5% down, including mortgage insurance): ~$3400First-year PITI (with 2-1 buydown): ~$2900Monthly income (after taxes): ~4-5kLiving expenses (utilities, groceries, etc.): ~$1600Savings available: ~15-20% of the purchase priceCash to close: ~$34kRehab estimate: ~$34kRemaining reserves: ~$20-25kTo fully fund the rehab, I’d need to come up with an additional ~$15k in the short term, which I anticipate paying back quickly once the rental portion is generating income.

By effectively utilizing space, we can often increase the number of units or functional areas within a property without expanding its footprint.

You'll want to incorporate interest costs on the HELOC while you're using it, but that will add to your holding costs in addition to utilities, closing costs, etc..

(Like RC Wiley) The money losing warranties offered by utility companies.

I do own two triplexes in Scranton, and I will say the one issue is that you are going to be taking care of the utilities normally if they are not on separate meters, which could take a good amount of money away from your overall cash flow. 

This really puts things in perspective and helps me what I would need to do if I consider utilizing this strategy.