Quote from @Tyler Garza: Quote from @Wale Lawal: @Tyler GarzaYour strategy—house hacking, leveraging equity, and scaling into multi-family—is solid, but there are ways to optimize it and reduce risk.

They have low ore cost, low labor and low energy costs.  

If the foundation is good, the roof is good, the floors are good, the layout is good, you are probably saving at least $100k right there in labor/materials.The other thing that frequents adds a lot of cost is when the unknown occurs.  

Unless you have a way of sourcing deals or access to a crew (cheap labor), it's going to be very, very difficult.As for a market, I lived in Houston for a dozen years and still own property there.

The contractors who did not give me detailed bids, or even formal bids at all, were quoting me between 15-45k just for labor.

Additional costs will creep in and costs seem to go up faster than rents, so I would sell and try to otherwise optimize the VA loan. 

Here are some trends that could play out, or further develop in 2025.Leasing & Tenant Experience AI-Powered Leasing: Chatbots and AI tools will streamline leasing processes, from answering tenant inquiries to scheduling tours.Virtual Tours & Digital Leasing: These will become even more standard, making it easier for tenants to rent remotely.TechnologySmart Property Management: IoT devices (smart locks, thermostats, etc.) will become more common, improving efficiency and tenant satisfaction.Property Management Software: Platforms will integrate more AI for predictive maintenance, rent collection, and financial reporting.SustainabilityGreen building practices and energy-efficient upgrades will be a major focus, driven by tenant demand and potential incentives.AI & AutomationAI will play a bigger role in tenant screening, rent pricing optimization, and even predicting market trends.Automation will handle repetitive tasks like maintenance requests and lease renewals, freeing up PMs for higher-level activities.I'm sure there are plenty more shifting trends that I haven't mentioned and that are sure to evolve over the next year. 

A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

Here in Chicago, you should expect a range from $200-$275/SF, depending on the location, experience, labor, and material finish level.Are you in a position where you already own some land, or what is your current situation?

Through proactive maintenance, efficient tenant placement, and careful financial management, I optimized rental income and ensured a steady cash flow.