Over time, you could leverage this equity to invest in additional properties that provide better cash flow.Diversify Investments: You're already invested in stocks and real estate, which is great for diversification.

As for the additional escrow unsure why you would be requesting that much more but for the rental increase you just need to send legal notice and they must abide by it as they are month to month then you can look at eviction if they choose to disagree with that route.

A couple additional comments. 1.

@Tracy Scott it's highly dependent on the deal, the type of property and the location.In addition to the items others have mentioned, here are some of the biggest potential start-up expenses that I study closely before buying a property:Foundation/structure--this is one of my few "deal breakers", I typically will not purchase a property with significant foundation or structural issues.

This equation is pretty simple, in theory, how much additional rent can you get by upgrading versus keeping it in its current condition, divided by how much will it cost to upgrade?  

Building a network of agents who specialize in sourcing the deals you are looking for and other investors is an additional step you can take to get more deals!

Additionally, I have a partner who's a Financial Advisor and would also be involved in this venture.If anyone knows of any promising businesses in this space, I'd greatly appreciate any leads or recommendations.Thanks in advance for your help!

Feel free to reach out for any additional information.You and your wife are on the right track.  

There may be some additional loan programs depending on the situation. 

You can’t protest that the seller got a discount you don’t qualify for.