They already lost some major players due to the state capping rates https://www.foxbusiness.com/lifestyle/california-insurance-c... will all insurance companies stop coverage, raise rates or reduce what they cover?

The Charlotte rental market is experiencing significant shifts, and it’s raising some important questions for both investors and property owners.

Being able to raise rents after the rehabs will sting at first (up front) but will definitely help moving forward with cashflow.as mentioned above, staggering leases could help mitigate. 

I'm aware of this model just as Jason is BUT it isn't the model that we follow.

@Jay Fayz for SFR (1-4 family) Classifications are mostly opinion-based.Not aware of anyone tracking eviction rates, except Evictions Lab nonprofit that doesn't like landlords.Here's some info that might helpt:---------------------------------------------------------------------------------------------------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?

There are several out there that I am aware of that are taxed at rates which are currently lower than ordinary income rates. 

How do you think the 2 relatives will feel about having their rent raised or being required to pay rent period?

All work done to raise value after TOD is not legally in that stepped up basis.  

Now we could just pad that into the Pm fee, and then we'd raise the PM fee to encapsulate that expense.

Raising equity can be the most challenging aspect of closing a deal.