@Scott VaethIf you live in part of the home and rent out rooms, you might be able to keep the lower 4% owner-occupied rate.Instead of a long-term rental that barely covers half the mortgage, could you do a rent-by-the-room model or target traveling professionals to increase cash flow?

A simple explanation might be that rents have increased to offset higher mortgage costs, but what about property owners who locked in rates below 4%—or even 3%?

The two-family property now has better curb appeal and the rental units are much more desirable, which has helped me increase my rental income.

@Paul Whitney Detroit property values increased over 20% in 2024:https://detroitmi.gov/news/detroit-home-values-increased-ave...https://www.cbsnews.com/detroit/news/detroit-home-prices-amo...https://www.detroitnews.com/story/news/local/detroit-city/20...DM us if you'd like more info...

Strategic pricing and market positioning were key factors in increasing the property’s value.

Chicago is a lower appreciation market but with the trends we've been seeing with increased rates of hurricanes on the east coast and fires in the west, I do think long-term we will see some migration to the Midwest.

The median home value in Phoenix as of April 2023 was $368,657, which is a 23.5% increase from the previous year. 

Increased demand for historic district rentals and excellent rental history.

Thank you, and that's what they explained, but without knowing as much about taxes as they do, my first thought was "well can't I reduce the number in my "repairs" line to increase the deduction "number" in my depreciation line?   

Given that the property was worth $390K in its current condition, I saw an opportunity to make the numbers work while keeping my upfront costs low.Instead of increasing my cash offer, I negotiated a $25K down payment with the seller carrying the balance for two years through owner financing.