We can get $500-$700 per bedroom in my market so even expensive construction costs are usually outweighed by the massive upside in rent.

All in all i think the pros out weigh the cons.

At least until Illinois can get their property taxes under control and fix our out-migration issue.But for others I'm sure the Section 121 benefits may still outweigh the loss of property tax / mortgage interest deductions.

Now,  there is some personal/social trade off (living next door to tenants/not having the cookie cutter house with white picket fence) with this strategy -  in my opinion,  though, that is far outweighed by the the financial advantages.I’d be more than happy to walk you through a few examples to help compare the two paths and ensure you’re making the best decision for you and your family.So, feel free to reach out at any time!

When we take interest in a market we also like to have other poke holes in our rationale and if we get an objection we really can't overcome is outweighs any of our whys then we go back to the drawing board.  

I think the risks outweigh the benefits.

You then compare them to the benefit (rate of return) and make a decision on if the benefit outweighs the risk.   

Account Closed - If you find a deal good for both people, you probably wouldn't want to cash them out anyway because fees/headaches would outweigh the refinancing benefit. 

The benefits far outweigh the slight irritations, in my opinion, especially in low income neighborhoods where tenant's income tents to be unreliable because they are in low paying jobs that change often.4) Any inspection cost by HUD?

Its much less "passive" than a typical rental, but the pros FAR outweigh the cons IMHO - especially if the unit isn't too far from your primary residence.