Altwon Simmons We would need the rest of the assumptions that gets you to the cash flow

I would almost guarantee 100% vacancy with the current crop if you go up $200 per unit, so you should probably start with the assumption that everyone hits the streets and you are going from scratch, especially if you plan that kind of major renovation. 

Your assumption that Las Vegas is cheaper is spot on, of course.

On closer analysis, I'm not so sure.Scenario 1 - AnalysisIf I use the 20k from scenario 1 to invest in a $70k property, after a whole lot assumptions, I estimate about $5k/year in tax deductions over the course of a 30-year mortgage.

@Mike Flora Thanks for the response, that was my assumption, I just wanted to make sure.

So the assumption is, this is where more investors are buying.

Then they'd be stuck with property they don't even want.So the assumption is, "Why would I need more money in if it doesn't cost much?"

If people tend to stick with longer leases (2+ years), this might be a safe assumption, but if everyone's on a year to year lease, this might go up a bit.- Property management: do you plan to property manage the building yourself?

I think that in general most people would recommend selling this property and investing in a better income producing asset for a few reasons (not coming anywhere near the 1% rule, roughly a 3% CoC return after refinance (I made some assumptions), negative CoC return without refinance,...), but...for it being a first rental property it may not be a bad option to hang onto for a few years to learn the game.I would think that you would not want to refinance, instead keep the money and start looking for your next investment.

Making a number of assumptions that you don't have control over.