Nothing is different with Airbnb other than those hosting avail privately owned real estate for commercial purposes and only here its at the hosts’ personal expense to acquire the license and pay the tax.

Financing costs are much more expensive than they were a few years ago, and you just never know when a property is going to be a maintenance headache or you happen to switch to a market where rents happen to fall over the next 12-18 months. 

Currently, I bike and take the bus to work to save on expenses from owning a car, I meal-prep once a week and eat out only occasionally to save on food costs, and I strategize my regular spending to receive the maximum cashback.Looking forward to interacting with this community and learning more about making smart investment choice.

After completing the remodel, I plan to switch to a different insurance policy and be refunded the unused portion of the escrow, making this approach a win-win for improving my home and saving money on insurance.Additionally, by paying 5% down and planning to reach 22% equity in the property to eliminate PMI, I'm taking proactive steps to reduce my monthly expenses and make homeownership more affordable and sustainable in the long term.ConclusionI'm curious to hear from the BiggerPockets community: have you found that renovations can help reduce insurance costs?

Be sure to get information about the age of the capital expense items (roof, HVAC, water heaters, and sewer line as well).

In an expensive market like CA cash flow at 4% could be great if the other metrics were solid.

When they sell an expensive property, they have money left over to bid up properties in Arizona and live in much larger and nicer houses in better neighborhoods.Anybody who already has properties in Arizona has done quite nicely.

Adam,I hear that statment a lot but the key component of this REI game is once you have your mortgage paid down. 

However, now we find ourselves at a crossroads.The property is fully paid off and holds sentimental value as part of our inheritance.

If it was my deal I would look at the big capital expenses (roof, foundation, AC etc) and determine if those will be a factor in the older property.