are rent increases realistic?

I normally just do new construction on these pemb, so I have never done an actual modification of an existing pemb to increase the square feet. 

Rental income would be $12-14k per year, so your netting $1500-3500 the first year before lowering the interest cost over time and increased rent (rising at 8% per year).So for $0 out of pocket you get another unit, equity growth(over time), income that grows and you created a unit of housing that didn't exist before.

The increased depreciation deductions can offset your taxable income, including gains from the sale of the previous property.

Suffolk, VA has a 4% population growth for the past 3 years What made you interested in investing in this type of deal?

You'll want to keep track of these because they can Increase or decrease your at-risk amount and as a result the losses you can take as a partnerYou or your CPA will need to report these on your IRS Schedule K-1s for each of the partners in LLC. ...

Instead of increasing rent, I would look at having the security deposit increased to protect against wear and tear.

The shorter the prepayment term has an impact on increasing the rate.4.

I stand corrected:)They do have an office in Metro Detroit and while we're far from perfect, we seem to get a lot of their unhappy previous clients.In our opinion, they built a system for Class A rentals - where tenants have 680+ credit scores and rarely have to be evicted or trash properties.They then tried to apply their processes to Class B & C rentals and that's when their service issues increased.All this caused them to recently significantly increase their Flat Fee pricing and monthly minimum charges.

@Stephen Hood your idea is solid and shows good potential, but here are a few things to consider:Private Lender Terms: Ensure the lender agrees to the 1% origination fee and $2K monthly payments—some may require a higher interest rate or balloon payment at the end.Timeline for Sale: Factor in potential delays with selling your current property or completing renovations on the new one, as these could impact your refinance timeline.Refinance Feasibility: Confirm with lenders that refinancing at $500K is realistic, especially after recent rate increases and appraisal expectations.Exit Plan: Have a backup plan in case the market shifts or repairs take longer than expected, such as extending the private loan or bridging with a HELOC.If you can lock in favorable private loan terms and stay realistic about costs and timelines, this could work well.