Real Estate Investors can play ahead of the game by learning about 1) Real Estate (of course), but not the basic stuff....all the tricks that can make you stay one step ahead of your competition. and 2) Construction - How a house is built and how to fix, remodel and add value.So for #1, you can just make this forum an addiction.

Speaking broadly, I think the best investment strategy involves finding properties that aren't fully utilizing their income potential.At a more sophisticated level, that might mean buying a fourplex of large two-bedrooms, making relocation agreements with the tenants, remodeling the units into three-bedrooms, and then renting them out at market rents.

I've done similar things with adding or remodeling while house hacking and needing funding to do so.

This means that if you remodel and refinance in the first year, you will have to pay a 5% pre-payment penalty.

A full gut remodel is no joke.

Currently it is not worth a whole lot since I am taking it down to studs and slab, but when it is remodeled, it should come to a 2-bedroom 1 bath home in the area.

@Ernesto, I was conservative with increases at first and my renters were flexible with me as I did the remodeling with them in the units. 

.; remodeling an existing space; replacing or adding AC, flooring, insulation, roofing, etc. 

Almost every remodel I did for decades involved opening up the main living space.

Rafael   Welcome, IMHO one of the most important aspects to residential remodeling and construction is to be onsite all the time, especially when new.