I just renewed his lease for 12 more months and $50.00 increase.

I have a rental there that is doing very well and as I’m looking for more properties I’m seeing the prices increasing pretty quickly.

Start small with house hacking and consider buying multifamily properties to increase cash flow.

Buyers are taking advantage of opportunities, with the median sale price increasing by 3.2%, now sitting at $640,000.But cash deals are down—just 21.6% of homes were paid for in cash, a 22.8% decrease from last year.

There's tons of different ways this can go.... if he is someone that doesn't NEED the passive income, I would recommend multi-fam property w/ 25% down in a strong B or better neighborhood where he can at least break even and focus on a market with strong appreciation and rent growth. overtime, his cash flow will increase, and his net worth on paper will grow significantly. 

What is the prevailing cap rate in the market for this asset class and make sure that the reversion/exit cap rate is half a percent at least increase bc you're assuming that you're selling it in a junker market.Loan Terms & Exit Strategy:Verify the loan terms (e.g., 3+1+1 extension structure).Confirm if the deal involves bridge loans or fixed-rate, long-term agency financing.Assess if the extension options are realistic based on the current and projected market conditions.

That experience, though frustrating, will only make you a stronger negotiator in future deals.Cosmetic updates were a good move to increase appeal without overspending, especially in a prime rental market.

This approach allows you to manage the property closely, benefit from homeowner loan terms, and potentially increase its value with improvements before renting it out.As you transition the townhouse to a rental, ensure the rent covers all expenses and provides a profit.

Thus you have spreads increasing (widening) even as rates are moving down.As I'm sure you're aware, the 10Y treasury somewhat tracks the 30Y fixed rate mortgage rates because the average duration of those assets has always been around 7 years (i.e., very close to 10). 

Potential to increase rents over the long-term?