As well, and assuming necessary, once done, you can advertise this upgrade and the positive resulting heating and cooling bills in future marketing when the need arises.For straight rentals (not a property sold via Lease Option, CFD, or other Owner Financing), I never pass large expenses on to my tenants (pretty much anything over $300, unless their fault), but assuming this is a defect or need that I did not see in my pre-purchase home inspection report, I will just deal with it out of my own pocket and earn a bit of positive "good landlord capital" in the process.Good luck with it!

It was a great move and I have a great equity position and cash flow using other people's money.

Thanks everyone for the prompt feedback.

I am still rather young (26), but have found real estate investing much more exciting/lucrative than other investments.Since beginning my journey I have acquired 5 rental properties that are all cash flow positive.

So if I'm looking at a hard money loan first position debt fund that does construction loans on multi family properties in California, I look for the worst recession for that (S&L crisis recession).

It all depends on how we're qualifying for the loan -- are we in a position to be able to provide tax returns and income for the purposes of qualifying?

A win-win situation on this property that has had positive cash flow ever since.

Once your net rental income is 2.5x your personal housing expense, and you have no other consumer debts, and assuming you are only purchasing cashflow positive real estate, you can get a Fannie loan with "Landlord" as your job. 

Purchase price: $194,500 I purchased this home with the intention of fixing it up and renting it out after I rehabed it.I have been earning a positive cash flow for the last 7 years.

If they don't have experience they are unlikely to be in a position to advise.