Request the tenants leave, flip to 3 bedroom, and rent to new tenants at $986If I convert from  2 BR to a 3 BR, I've calculated a payback period of 2.3 years... here's the high-level of how I came to that number:Annual Opportunity Cost:3 BR vs 2 BR Rent = $2,790My Time (expect less needy tenants) = $1,183TOTAL OPPT COST= $3,973 <-- This is a favorable numberCost to get unit ready as 3 BRTotal to flip = $7,551 (includes paint, new floors, converting basement to bedroom, etc)  2 Months lost rent = $1,510 TOTAL UPFRONT COSTS $9,061 <-- This is an unfavorable numberPayback Period =  $9,061 / $3,973 = 2.3 years (Note if I'm conservative in my nubers, this becomes 3 years)Couple more things to note, they're set up on re-occurring payments and have not missed a payment.

People will argue of impending Armageddon if you don't slavishly follow your contract  but it's not true.It can be a way you choose to operate your business - most it's not how most businesses  operate (ever heard of the gesture of goodwill) and there is no real reason (no it will not necessarily get you in Fair Housing trouble) for a rental business to be an exception. 

@Shantelle Evans I love both tools, although if I had to choose it would probably be the HELOC.

Am I required to use the broker who showed me the HUD home if I did not sign any agreement? I'm new to this and thought I was meeting with the listing agent. However, they sent their assistant who is a realtor who wan...

id need one too > changing garage door, painting basement wooden ceiling, changing locks etc.

The house still needs paint and yard work.

You’re betting on appreciation and choosing to lose money monthly (rather than increasing a down payment) to make that educated guess and keep capital in the bank.

You also see some that have sheet vinyl flooring and old painted cabinets. 

We put new cabinets, granite, stainless, redo bathrooms, knock down walls, new flooring, and paint in some of our unit turnovers.

That is just a general statement.I also agree with choosing investments that fit your lifestyle.