Many of the issues would be the same, but compared to equivalent multifamilies, detached houses are able to attract the best of the applicant pool and command higher rents.Alternative 3: If asset appreciation is more important than interim cash flow, there are areas where gentrification is most likely to occur.

When I was in the military, in boot camp, the company commanders had an answer to questions that we asked them, and it went something like this:"Not only No, but $%#% No".You can replace the symbols in your mind.

For my part, I use the high salaries we command (at the moment, at least) to fund real estate investment.

of the other respondents that photovoltaic panels on your rental will not increase the rents you command, nor will it have a cost-effective payback (a least not anywhere where we've looked at it).    

@James Masotti I think you and I share similar approaches, all of my units are upgraded to the point that I command a $100-150 premium to neighbors just down the street.

Our rational is as follows:We can command $30 - $50 additional rent for en-suite laundry;It is a differentiator in some of our markets (not have coin-op in student rentals goes a long way);Installing the laundry ourselves ensures it is plumbed correctly with drip/catch pans (plumbed to a floor drain) under the washers;Providing the machines cuts down on the damage to the building of tenants moving machines in-and-out;Using high-efficiency units cuts down on water consumption;appliances are depreciated over 5-years (in Canada).  

The Suburb renter typically commands lower rents than the young hipster of a trendy DC neighborhood.

You should be able to command hundreds of dollars a month more for the extra bedroom and bathroom, so the rehab could easily pay for itself over the next couple of years.I converted a 2BR/1.5BA house into a 3BR/2BA house just over ten years ago using the existing floor-plan (didn't add onto the house, nor did I convert the garage).  

By evicting the tenant and spending money on fixing up the place are you going to be able to command significantly more rent than what Section 8 is currently paying?

Paul and Summit Hill, Grand Hill, Merriam Park, Mac Groveland, Highland commands more rent/square foot than places like near north, Frogtown, east side, est.Good luck