Bought in 1999 for 120k. 7.5% interest rate with pointsRents when purcashed: 500 and 600 - Total 1100/m80% of 120k at 7.5% = $671/m (Just mortgage payment - no Insurance and taxes included)Today:Property is worth 560kRents are 2000 and 2200 - Total 4200/m4 years left of payments.Rent increased almost 4x and value almost 5x2.

But wanted to add that you may want to consider a consultation with an attorney or even your liability insurance company to discuss best ways to handle this up front to avoid mis-steps in communication with the tenants, neighbors, media etc.

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

You have this experience on the rehab side, you just need a competent team around you: title company, insurance agent, realtor, etc.

It is very hard to "perfect BRRRR" here with consistency or anywhere for that matter with today's rate and insurance costs.

Are there any issues with insurance for these units?

You're better off building a stable tenant base with long-term renters for more predictable income and less turnover.

If you buy a house with a $1,500 mortgage, you also need enough to cover taxes, insurance, and maintenance.

I’m worried about legal/insurance exposure and also just generally annoyed at all the foot traffic in the u it

We call this a resident benefit package which also includes renters insurance.