Do you need to increase rents in the next year to cover your costs?

We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k.  

@Chungying ChuIf you want more liability coverage, ask your insurance company if you can increase it.

Strong rental demand: With major employers like the Cleveland Clinic and University Hospitals, along with a growing arts and culture scene, Cleveland attracts a steady stream of renters.Revitalization efforts: Many areas of Cleveland are experiencing significant revitalization, which can lead to increased property values and appreciation potential.I can't comment on the Detroit market specifically, I have never been and have never done any research on it!

I like the cash flow and see the potential for increasing rents, but I’m hesitant about overpaying.

I think you're missing another point-- if rates increase.

I like the cash flow and see the potential for increasing rents, but I’m hesitant about overpaying.

We had nine months straight of increasing inventory.

However, I just received the closing docs, and the rate on the 6.9% loan has been increased to 7.8%.

I'd underwrite the property, with that low interest rate assumable mortgage, to cash flow positively from day 1 as a long-term rental, but be willing and able to use the rent by the room strategy or to rent out part of the property as a Short Term Rental to dramatically increase cash flow during my occupancy.