Again, not a tax professional and you definitely want to talk to one to confirm, but this is just information I'm recalling from a CE class taken a while back.Also, I believe the $1 million threshold on the mortgage interest deduction was reduced to $750k back in 2018, if the subject property for the mortgage the deduction is based off was acquired after Jan 1, 2018.

Some common methods are through strategies like charging extra fees for covered parking or reserved spaces, renting out common areas for parties or events, adding or increasing pet fees, sub metering utilities, and converting unused spaces into storage units that tenants can rent.TIP: Ensure you understand any services that are included with tenant rents and the existing sources of miscellaneous revenue, if any exist.

When I ran my numbers, I ran with increasing the rent $50 right away and then over time adjusting it slowly with the tenant to market rent (or market rent to a new tenant if this one left).It's not a cash flowing property as is when considering variable expenses, but is appealing to me because of the maintenance already done, purchase price, close to home (so I can work on it with my kids to teach them), and with some businesses I can do 2+ year leases for a little more stability.I would like the seller finance so I can keep more reserves as I'm also looking at a STR cabin purchase.

Many times the lender will require a letter of explanation to confirm its use/occupancy.

If the problem is reserve for escrow account, you can ask the lender if you can opt to not have an escrow account for now.

Have you spoken with a property manager about rental rate to confirm they can rent the home for $2,500?

That's what I was thinking, so thanks for the confirmation.

Confirm the trends with the realtor for various areas you are scouting.

Keep the liquid cash as a reserve for maintenance, other options.

Even if you bought in 07-08 if you held because you had a strong financial position with reserves(which you always should) then you built tons of wealth.Moral is… you buy based on the best info you have available, not off what you FEEL the market is going to do.