Hi real estate friends,My wife and I recently bought our first home in Co springs area close to garden of the gods and other attractions in the area. to no surprise our interest rate is a whooping 7.1%, the main house has 4 - BD 2 B. our mortgage is $4009. the property we bought has an attached dwelling unit on the side of it, completely independent from the main unit we live in, we are currently renting it out for 2 years for a tenant for $1545, It has one bedroom one bath.My question is what are some ways to scale especially since in the current market (is kind of almost impossible)?

Armando, Do a house hack with 3.5-5% and live in the property for a year, build some equity, and you'll have a full scale rental when you move out. 

It is currently a glorified finished attic with little room- Use addition and raise it up and extend it to the side of the home for more finished space and room for deck, washer/dryer room etc- Make the living space as functional as possible with the added sqft- Add outside living structures like deckThis is a fairly wealthily area and I want to maximize my ROIWhat are some things you recommend for a large scale project like this and what are some hurdles ?

Cutting to the meat of the situation, I came across a property that looked like a fixer upper, typical investment grade property.

The most expensive exchanges are typically "one offs" done by an an attorney with no economy of scale which is a direct result of little direct experience.However I'd also counsel that you not simply look for the cheapest "fill in the boxes" internet intermediary either.  

You should see some of the houses I've rehabbed or walked. ya thats maybe a 5 on a scale of 6.. the really bad ones you need a resperator to go into them.. and people worry about a little dab of mold these folks live in a petri dish.

No way he could have grown his rental business that quick or developed scale, by buying his own properties.  

You can use that equity to scale whether you rent it or not. 

You’ll have a better feel for property values, rental demand, and rehab costs in areas you know well, making it easier to manage and scale your investments. 

But for someone thinking about scaling and possibly repeating the strategy in multiple markets.. say, Austin or San Antonio-going the investment property route might provide more long-term flexibility.Have you noticed lenders trending toward stricter definitions of “second homes” versus investment properties?