Hey @Michael Schoenbeck, to quote part of the 504 info:   To quality, a property must be more than 51% owner occupied.

Also, have you considered using a decent quality, pre-finished engineered hardwood floor (as opposed to solid hardwood)?

Visit the properties and consider the costs of repair/upgrade, the quality of the tenants, and the income potential. 

To fund these repairs, I used the same HELOC.As you can tell from the before and after pictures below, the differences are mostly a function of higher quality photos.

Unsolicited advice, but consider the tax implications with this.You may be able to take capital gains tax free from your personal residence.If you rent it out for certain period of time that benefit goes away.Consider taking the capital gains to buy separate rental property.Either way, definitely use a PM or Realtor if it's your first rental to get the proper background checks, paperwork, and highest quality tenant.

I analyzed a property in Houston, TX for fun and was wondering if anybody could give me feedback on what they thought about the quality of the investment and also if they would input numbers/ expenses differently.

Take a clue from the US goverment.Another way to optimize is liquidate properties that don't have the best long term prospectives and trade into better quality assets.

There are several good investment properties in the area that have great cash flow and with the bonus appreciation in our area that has been on a steady upward trend over the last few years we have had some great success so far.Biggest issue we found was finding quality property management which is why we manage our own properties and started a property management company to help several other investors and property owners in our area.If you are interested in investing this far north let us know if we can help in anyway!

True- definitely  hot however it comes with its own challenges.. there are entire threads on BP with investment in poconos.. regulations, lack of good quality and timely labor , make it a nightmare to operate at times..Originally posted by @William Beck:@Curt S.

But overall I will say this that there is growing frustration with ABB, the quality of service (or lack thereof), higher fees and rising costs of renting an ABB.