I agree with rents, especially with the increase of developments pushing "non-luxury" unit prices down.

This can add to your expenses, but can also help streamline the management process and increase the overall value of the property.Additionally, larger apartment buildings may come with more regulatory requirements and tenant issues to navigate.

Instead of being able to rent for $900 I will only be able to get $500 plus the increase in the usage of electricity which I will have to bill separately as adding a separate meter would be more expensive than I’m looking to spend at this point.

It will increase the housing shortage. 

These initiatives make it easier for you to purchase a property with less money down, increasing the viability of house hacking.Strategic Property Selection: Pay attention to assets that offer prospects for value addition and have a high rental potential.

Modesto is showing an increasing demand for STR.

So while you may not see a gain in value over the next two years, over a 10-20 year span you would typically see excellent growth.Also unlike the last five years where operationally the operator could be awful but saved by appreciation, today it is all about the asset management.How can you reduce costs, are there ways to add amenities to increase rents.

Additionally, since the loan is in your personal name, not an LLC, there might be increased personal liability concerns.Given these complexities, you should discuss them with a tax professional.

Tends to attract a younger /trendy crowd.

Larry, If I’m following your math, you need to find a way to increase your income outside of the rental property to cover the mortgage+heloc $1500 payment.