If they appreciate 2%, your return is now 9.5%.Adding some debt will improve your total returns.

Key details:- Existing debt: $2,038,000 at 3.8% with 7 years remaining- 92% of units already upgraded- Recently implemented RUBS program- Strong occupancy in a growth marketGiven the current debt structure and property improvements, this asset presents an attractive cash flow opportunity with potential for further optimization.

My jam is to build and improve to get better equity and cash flow through value add. 

I watched RETipsters YouTube videos and his BP interview and just jumped in.  

When you turn a personal residence into a rental, you want to make sure you calculate your basis properly.Your basis will be purchase price + improvements made to the house since time of purchase(Assuming the FMV at time of conversion is atleast this amount).Best of luck!

Study prices in home improvement stores like Home Depot to get a good idea of what everything costs, and log it on a spreadsheet.

@Steve Hodgdon Thanks, I just started listening to his podcast and watching his videos on youtube.

Following Lifestyles practices we improved our single family investing, started investing passively in multifamily, and now are syndicators of three apartments. 

Interior and exterior renovations and improved management plan in order to increase rents closer to market and mitigate expenses.

Making a larger down payment can improve your loan terms, but keeping some cash reserves is also crucial for unexpected expenses and future investments.