If you're going to get rid of the rental then does the upgrade provide $2-3 return for every dollar spent? 

Majoring in Finance, I returned home to complete my Bachelors Degree at California State University Bakersfield.With my degree in hand I wanted to extend my reach in the community so I started my Real Estate company Synergy Real Estate in January 2016.

Hi @Jeff Kennedy the only concern with allowing the tenant to provide you the credit report themselves is that they could easily create a fake report.  

You should also be deducting a 10% return on your cash investment from your rental income before calculating your NOI.

However I also believe SFH (rowhouses) are offering a better return right now than Multi family. 

A lot of design questions can easily be answered with pictures and digital correspondence. 

After all expenses including mortgage, insurance, water, property management, cap ex, turn over, everything, I'm making $2,000/month which is 15-16% cash on cash return.

It makes it a lot easier to split 50/50 on things like expenses, but still halves our individual requirement for a down payment which means I can get into the market in half the time.I am eager, of course.. but that doesn't mean I am eager to just buy any old property and expect a return.  

This will invaribly be different for each rate and scenario but just a general gauge.Even though rates are in the 3's and 4's the monthly payment or what we call the "mortgage constant," on our end is higher because your payment does not consist of just interest, but interest and and 1/360th of principal on a 30 year fixed loan which is designed to amortize/payoff to $0.00 balance by year 30 or 360 months.Typically a rate around 4's will have a monthly mortgage constant of around .50% monthly (6.00% annual) or about $500 per month for every 100,000.Sometimes when the rate gets into the high 3.50% range the MC is around .45% per month ($45 per month for every 10,000 borrowed) so it doesnt vary much while at 4.50% 30 year fixed the MC monthly is around .507% or $50.70 per month for every 10,000 borrowed.I suppose all this technical speak means is that if you borrow money where the outflow out of your pocket is around 6% with interest and principal considered then you'll probably want to reinvest it somewhere else where you can get considerably higher rate of return on this cash than 6.00% atleast this is how I look at it.If you want to make 6% + 6% for cost of funds then you'll want an investment with a hurdle rate of 12.00% or higher cash on cash as an example.

With the market as tight as it is right now, 30% is difficult, but there's houses out there with those returns.