I’m working on upgrading a three story home that the city considers a SFR into a triplex.

It’s come time to upgrade and rather than sell which will cost quite a bit I’d like to rent it out.

Evict bad tenants, clean up property, make minor renovations/upgrades.

I am doing that.As a Pastor and one who is socially conscious, the injustice really riled me up. 

I think a lot of the problem is I want to upgrade it as if I lived there vs what makes sense on paper.  

The two options I can think of:Hire a PM to manage the current portfolio and get them as far out of the day-to-day as possible.Sell the portfolio and upgrade to a large complex, using a 1031, with full-time management.

I'm just completing work on adding a suite in the basement and a few other upgrades to force appreciation.

When they return the property to you they have to return it as it was so you don’t have a problem there but obviously if they upgraded a few things that is awesome for you.

They passed Tenant Relocation Fees of $4400-$6500 capping rent raise at 9.9% so if you have an old unit that's getting only $700 you will only be able to raise it $63 even if you had to do a $20,000 upgrade you are capped.

I am going to take a small amount, approximately $50K, for a few more upgrades to justify the higher rent levels, and take another $100K in equity to be used as a down patment to buy/lite rehab another higher end property - either a multi or a SF that I will sell on a rent-to-own basis.In your case, if it were me, I would take some of your equity and buy another property.