It hedges any downside risk and increases cash flow.

Right now I own a duplex, I live in one unit and rent the other for $1400 per month.

Personally, I’ve been exploring opportunities where growth patterns and infrastructure expansion hint at future value increases.

We are asking the current tenants to leave as the property is not in optimal condition we like to have our rentals and we would like to fix it up to increase value and rents.

Will be interesting to see if you can get rent bump in that area.  

Quote from @Cameron Moore: Exactly. 15 years ago, I noticed an increase in owners using insurance to pay for a replacement roof, usually to sweeten the pot during a sale.

We chose this area and home because of the redevelopment in the area, increasing values, proximity to major venues like Lucas Oil and Gainbridge Fieldhouse.

@Jake Faris Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, These costs are not immediately deductible.

Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.So, the flood of new investors switched to buying Class B properties.

Mortgage rates tend to fall as the supply of funds in the mortgage market increases, making homeownership more affordable.