Looking for a house we could house hack, had an incredibly low interest rate on mortgage and house has increased in value about 42%, an estimated 180k in equity.

We decided to do a full rehab to get nearly double the rent ($2900)and increase the ARV to $260k.  

The homeowner collects a NET/NET 5% yield with 1% increases each year in long-term lease by a BBB+ credit rated tenant (similar to Morgan Stanley credit).

But in smart buying, if someone has enough cash to pay cash for a property, they could easily stash a good chunk of that away to cover downed months and still leverage to increase the overall returns on their portfolio.

This decision increased our budget from $15K to $45K, but it turned out to be a wise investment.

If you acquire one new property each year, you could significantly increase your wealth and potentially position yourself to qualify for larger investments, like apartment buildings or construction loans, within 10 years.I’ve worked with clients who have successfully implemented this strategy, and it has proven to be an effective path to building long-term financial freedom through real estate.Good luck with your decision!

Increasing for times when there is more demand and decreasing when it is slow. 

Much of it based on defense spending that will likely increase as assets are moved from Colorado to Alabama to include the Space Command HQ.

As other people have mentioned, does it increase risk of being rent controlled down the road?

Perhaps if your partner was a general contractor or handyman type there may be some merit there to reduce costs / increase profitability.If your partner enjoys deal sourcing, a better move might be for him to become an agent - so he could legally collect commissions from finding deals and managing properties for multiple people.