However, when you factor in the HELOC, we have a negative / break-even cash flow (HELOC payments are about 25% of the revenue from both).

Also, what’s been your biggest challenge when it comes to securing the funds you need?

It’s a beautiful custom home, one of the nicest in a so-so Oakland neighborhood ("biggest house in not the best area").Here’s the context:- Bought in 2014 for $590k, appraised in 2022 for $1.2m.- Located in a C- to B neighborhood—close to amenities and mostly safe but not for everyone.- Converted to a rental in 2024; initially rented for $4,750/month, but tenants moved out, and the soft Bay Area rental market has made filling it challenging.

Good question, I think the biggest question will just be your overall timeframe and how quickly you want to get everything done. 

For MTR, the best way to increase nightly revenue is to charge for pets!

At a conservative 6.25% capitalization valuation, the building is worth $16,480,000 in 9 months based on a run-rate NOI of $1,030,000.Key Finacial Highlights:- Projected Total Revenue Potential: $1.15M to $1.7M, reflecting a 48% increase.- NOI Growth: From $603K to a run-rate of ~$1M within the first 12 months, marking a 73% improvement.

The biggest indicator that they should not be comped against each other is from the market price of each.  

At a conservative 6.25% capitalization valuation, the building is worth $16,480,000 in 9 months based on a run-rate NOI of $1,030,000.Key Finacial Highlights:- Projected Total Revenue Potential: $1.15M to $1.7M, reflecting a 48% increase.- NOI Growth: From $603K to a run-rate of ~$1M within the first 12 months, marking a 73% improvement.

I’ve flipped a few houses and talked to a few investors and this is one of the biggest horror stories I’ve seen working with contractors.

That said the biggest issue with heat provided is not the thermostat but the open window in spring and fall when the heat is on.