We would love to do in such a way that it would improve his Debt-to-income ratio, which is a challenge for him at the moment, especially after having acquired this loan on the current $550k home in Denver.

In fact he is arguably in a better position since you have made payments on time, improved his credit, made improvements to the property and either stabilized or increased it's value, paid down the principal, caught up back payments, paid the taxes, etc. 

Asking Price 215000 Primary Inputs Purchase Price($) $ 190,000.00 Downpayment(%) 3.5% Units(#) 2 Monthly Rent($) $ 1,150 Occupancy Rate 75% 30 Year Loan Rate(%) 4.50% 15 Year Loan Rate(%) 3.90% Secondary Inputs Closing Costs(%) 6.0% Property Tax(%) 1.8% Insurance(%) 0.8% Maintenance(%) 10.0% Property Management(%) 10.0% Improvements($) $ 20,000.00 Closing Costs($) $ 11,400.00 Inspections/Misc($) $ 600.00  Value (30-Year Mortgage Scenario) Monthly Rent $ 1,725 Annual Rent $ 20,700.00 Value Per 2% Rule $ 86,250 Value Difference (2% Rule) $ (103,750) Annual NOI $ 13,800 ROI (Pre-Tax) 8.36% ROI (Post-Tax) 8.1% CAP Rate (50% Rule) 7.3% CAP Rate (Assumed Expenses) 6.0% Annual Expenses Annual Property Taxes $ 3,420 Annual Maintenance $ 2,070 Annual Insurance $ 1,520 Property Upkeep/Other $ 200 Property Management $ 2,070 Total: $ 9,280  30-Year Mortgage Results Money Down $ 38,650.00 Monthly Gross Rent $ 1,725.00 Monthly Loan Pmnt $ 929.01 Effective Rental Income $ 20,700.00 Annual Loan Pmnts $ 11,148.09 Annual Expenses $ 9,280.00 Total Expenses + Loans $ 20,428.09 Annual Cash-Flow (Pre-Tax) $ 271.91 Annual Return (Cash-Flow + Equity, Pre-Tax) $ 3,229.76 Annual Post-Tax Cash-Flow (Pre-Tax) $ 190.34 

Not sure if this is the right section to post in but I can't find something fitting.

This is about some issues with the BP phone app.

When creating a post, the line breaks when writing the post do not stay when actu...

As far as value/affect on the surrounding neighborhood - I am guessing that it will immediately have little impact but will likely improve value over the long term if when the school is built and starts to get good test scores/reviews as families will be drawn to that neighborhood. 

If you choose the 5 unit keep in mind that it may be easier to force appreciation by making improvements that lead to increased cash flow.Good luck.

One good startegy is to BRRR (or better BRRARR) a property - the financial sustainability of the approach over the life cycle of the investment is usually not pointed out sufficiently - a fully improved property will yield higher rent and require little money for repairs and maintennace in the first 10-20 years.

Hey Kristen,I would definitely do an in-depth ARV analysis and then have funds aside for improvements if the market can handle the forced appreciation.

Debated taking the risk of making some improvements while I'm in it....flooring, paint, etc. and trying to house hack it, but didn't think the margin was there.  

most streets and neighborhoods are improving there.