That needs to change, and it starts with improving my social and sales skills.Dividend Income – Slowly growing.

And of course, they may choose to not renew.Also remember, many listings are priced with the LL assuming at least some improvement costs needed for new tenant, which you don't have. 

The business: Short-term rental on two houses (One is turn-key, the other needs a little improvement then can be rented out).

It is the reasonable rental value without the new improvements, because the tax sale investor did nothing to add value regarding the improvements. 

But as others said your income with the rentals should go up and DTI improve not go down

Let me share what I've learned about when they truly make sense.The clearest wins come with:- Properties purchased (not inherited) within the last 5 years- Commercial or larger multifamily with substantial improvements- Assets you plan to hold for at least 3-5 years- Purchase prices exceeding $1 million- Properties with significant non-structural componentsI recently reviewed a case where an investor spent $4,000 on a cost segregation study for a $950,000 duplex constructed in 1978.

Let me share what I've learned about when they truly make sense.The clearest wins come with:- Properties purchased (not inherited) within the last 5 years- Commercial or larger multifamily with substantial improvements- Assets you plan to hold for at least 3-5 years- Purchase prices exceeding $1 million- Properties with significant non-structural componentsI recently reviewed a case where an investor spent $4,000 on a cost segregation study for a $950,000 duplex constructed in 1978.

While there’s no official A/B/C/D classification of Phoenix neighborhoods, here’s a data-driven breakdown of some of the best areas to invest in, based on median purchase price, average rent, and investment potential.Top Phoenix Submarkets for BRRRRAreaMedian Purchase PriceAvg Monthly RentAppreciation Potential (1-5)Cash Flow Potential (1-5)Maryvale$320,000$2,00043Alhambra$350,000$2,10043.5South Phoenix$375,000$2,20053.5Tolleson$360,000$2,15044Avondale$380,000$2,2504.53.5Glendale$400,000$2,30043.5Mesa (East)$420,000$2,4004.53Paradise Valley$1,500,000$5,50052Breaking It DownIf you're looking for the best appreciation potential:South Phoenix, Avondale, and East Mesa are seeing rapid development, infrastructure improvements, and rising demand, making them strong contenders for long-term value growth.If cash flow is your priority:Tolleson, Alhambra, and Maryvale still offer affordable entry points with solid rental demand, making them attractive for investors looking to generate monthly income.If you want a balanced investment:Glendale and Avondale offer both rental income and appreciation upside, making them ideal for investors who want the best of both worlds.What’s Trending in Phoenix Renovations?

I’m looking for a small multi-tenant retail building between 7,500 and 12,500 square feet—ideally with good occupancy but room for improvement.

I would make all of the improvements that are going to make your job as a rental manager easier (sounds like you have some long term maintenance items to take care of).