At my point in life everything I own is both a cash flow superstar and appreciating nicely, because I'm invested in growing, popular areas.If I was just starting off now, I'd probably be aiming for value-add in good areas where I could either live there while improving the unit(s) - ie a duplex, triplex - or where I could trade sweat equity for profit, or both.

I initially accepted it as an improvement.

Over time, you’ll also have the option to raise rent to further improve cash flow.House hacking is an incredible way to learn, build equity, and set yourself up for future opportunities, it's how I started as well and it was the best decision I've made! 

That would mean a return of $253*43 - $8735 = $2144, which translates to a yield of 12.49% over that period (plugged those numbers into 10bii) or a CoC of $2,144 / $253*43 = 20% +/- a few basis points to account for cost of capital.By using this system we got about a 2%-3% improvement from the original 10%.

Full stop.An investor can buy undervalued RE, do efficient improvements and create massive value. 

Additionally, smaller properties (2-4 units) tend to have lower cap rates because they qualify for conventional financing, which impacts the math.If you’re struggling with cash flow, finding off-market deals or considering seller financing could be a good way to improve the numbers.

You could do the upgrades then rent out the units or sell after you made the improvements.

For every ONE PERCENT that cap rates move against BAM they have to improve NOI by $6,000,000 just to BREAK EVEN on the property value.

For investors, this translates into higher cash flow and improved ROI.2.

The quality I can improve but once the limbs have hit 1 inch the value is impaired moving from A to B or lower quality.I’ll process logs, rough sawn, kiln dry, planed.