It doesn't book as frequently as the smaller house, but generates more income.

Hopefully, you find it helpful and qualifies us to assist you with your goals:)---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I put the cash from the refi back into more mutlifamily units that produce more rental income. 

If you pay down $100K in loan saving you $1K in monthly costs against rental income, or you invest that $100K in something that generates $1K in net income the result is similar.

It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.

It's also worth speaking with a local real estate agent to identify the best neighborhoods for rental income potential.

My thinking immediately turned to researching local rental costs per square foot to determine income potential with triple the current square footage.

Would it be smart to tack on another 203k in the future assuming my income covers payments?

@Dan PoratI am looking block by block at the household income and agree with D to C depending on exact address.

We are still seeing a majority of properties be cashflow positive from Day 1. 2) There is no state income tax in Tennessee!!