We signed P&S agreements on 6 different properties totaling 20 units approximately 8 months ago and received a call today that the price we thought we were buying at has to-be increased on average 13% due to the increased cost of construction.

With a few tweaks to the management structure, and with new leadership, I figure we can greatly increase the revenue.

There are times when we see deals on the table that won't produce any cashflow or not enough cashflow to meet our target hurdle rate but the tax benefits or appreciation potential may make the deal attractive. 

They're affordable enough to allow good cash flow, while also attracting decent tenant quality.

Based on that, do you anticipate increasing or decreasing your investments?

Value and rents should eventually increase to turn cashflow positive and build your wealth.You're next learning experience will be, now that you are out of day-to-day management, how will you be able to handle the inevitable expense challenges?

The neighborhood has seen a lot of revitalization in recent years, with an increasing demand for both residential and rental properties.

I'd have to do some research on the local market to know if this would meaningfully increase the value and the appeal as a rental in the long-term.

They have increased in value, and our rents have increased by more than 45% overall.

Capitalized costs increase the basis and depreciation deductions over 27.5 years.