My question is when and should I renovate the 3br also.The house has never had a problem attracting renters because of its location.

As a long-term investor, would this be attractive to you (assuming the numbers made sense)?

Glad to hear the podcasts have been inspiring - that's one of the things that attracted me to BP.Be sure and set up your keyword alerts - they help you quickly zero in on relevant forum discussions.Good luck!

I like the idea of taking something that nobody wants, adding value, making it attractive, and having people decide to spend their hard-earned money on it because it's something they really like.

Buy and hold seems to be the strategy that attracts me.

Buy and hold seems to be the strategy that attracts me.

http://www.realtytrac.com/Content/news-and-opinion/top-25-hipster-zips-for-returns-on-rental-properties-7940Check out the above article about how "hipster" neighborhoods are attractive for real estate investors.

SFRs have better exit strategy options though and may attract a higher quality tenant.

I think it helps attract good tenants, better rents, less vacancy, and less headaches in the long run.

It will provide a positive cash fairly easily and while the SFH may provide a positive cash flow, you have a big question mark with the furnace.If you are looking to flip then the SFH becomes more attractive.