Hello everyone this is Arlin , I’m a home improvement contractor in the Northern Virginia area just staring with real state investing business, currently looking to net work with investors or partnership with entrepreneurs 

It sound like there are likely to be some additional expense in conversion of this basement into a third unit, however the additional income may in time offset these as well as the deduction of capital improvements (this is for a pro/CPA to determine what adds value, etc). 

Hello everyone this is Arlin and Skarleth, hope everything is well with you all We are new real estate investors, we will love to network with new and professional real estate investors to obtain and learn our pathways to success in this business, we have experience on real estate state as we have our own home Improvement business and have been working with many Real estate investors and we love what we do, that’s why we have decided to take the necessary steps to grow more in this business We will really appreciate any advice and share experience with allThanks in advance 

Make some improvement for comfort of tenants which added value to the high rent.Completely redid second floor unit into an open concept, new kitchen and fresh paint.

While living here I am making a handful of major improvements on the house which will help increase rental value (capital expenses, like new appliances and flooring) as well as small repairs that were already needed when moving in. 

Seller raised rents to this amount as he made improvements mentioned in original post.

We don't flip here in California as out prop 13 penalizes people trading often we pay $15,000 less in property taxes as an identical building sold next door 5 months ago. all improvements are an expense at this point but appreciation has over $1,000 per day on just one property.

You get the best bang for your buck on SFHs - because of the potential to add square footage, make major improvements, add a bedroom, etc. 

Or do I have to improve the property to up its value like the BRRRR method?

Hi everyone, I've traditionally stuck to long term buy and holds that have required limited repairs/ improvements and have not gone through the refi process as yet.