Some other factors to consider - How long are you planning to hold this property?

Also factor in if the rents jumped a lot and if that would lead to a vacancy, which will cost you more in the short term. 

That should really be the deciding factor...is it necessary and a large enough project to include the permit process?

However, the suitability of buying and renting out a single-family home in Richmond can depend on various factors, such as market trends, rental demand, and property values (similar case with all markets, really.)Chatting with a local agent in the area can provide very helpful insights into the market, data, and specific neighborhoods.

I’ve been in a similar position where I wanted to scale but equity was a limiting factor.

Factoring market conditions at the time of refinance, I negotiated a lower rate and conceded a lower term anticipating rates to normalize in the 4%-5% range by 2026.

That is $19,200 annual profit so you would be -$3,200 in 1 year with no factoring of breakage and maintenance.

Is it fairly priced for the size, location, quality, and other factors?

Note that the diagram doesn't consider tax implications—that's another important factor you'll need to include in your decision.

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.There are several important factors, when thinking about proposing Seller Financing.