So, I would suggest at least raising the rents, just to cover that increase in expenses.

"the typical home warranty costs $450 annually, and only 25% of premiums are paid to homeowners.

That’s a 20% return on investment before expenses, down from 26.1% at the same time last year.

Let's assume that rent by the room yields $1000 per room all bills paid for the tenants.  

There is a designer sofa bed in the living room with a queen bed with a comfortable mattress in it and it was pretty expensive.

The process from start to finish would take four months and cost ~200k to build, with comps in the area around 355k-lender man said, refinancing would take six months as most lenders wont refinance a property unless its been built for six months, affecting the strategy to get paid out from refinancing quicker and closing out on construction loan-The property would not appraise at comps value, but at the cost it took to build, affecting getting paid out from the refinance.

Depending on how big your portfolio is it might be more or less expensive for you.

I live in my own primary residence and that is fully paid off. 

Short term my credit score did take a hit, but once the promotional transfers were paid off, my score jumped higher than it was before.These days, the "pure" zero percent transfers don't seem to be around anymore as they typically charge a 3-5% balance transfer fee as part of the promotion, but this is still better than current HELOC rates.

Most of us get paid a percentage of the rent so a reduction is not benefitting them financially.