Obviously not sustainable long term either.Total Return for the first year: -3,600(cashflow) + 5,694(equity) + 24,375(6.2% appreciation) + 4,000(tax break) = 31,000Total paid for property: 46,883.39 Total ROI for first year: (total return/total paid) = 66.1%There are two things happening in April 2015: Getting a new appraisal to drop the PMI (the market prices here have been growing at 6.2% year over year) and the raising the rent to market rate.

I was born and raised in Colombia but have been in the states for half my life now.

If i hold as inflation hedge, I can raise rents if rates go up but sale price will go down and i will have to pay capitol gains if i wait more than 3 years.

Any suggestions about how to raise capital?

My strategy so far has been looking for deals in solid neighborhoods, and then putting in the work to force appreciation and raise rents.I think it's great you are looking to expand into the TC market. 

I'm raising a $10M fund and an looking to present to accredited investor groups in California.  

Born and raised a Texan.

Can simple upgrades be made to raise rents? 

If I bought the second then I would not want to forclose on them, but just discharge the debt to facilitate the purchase.Wouldn't the 1st object if I raise my offer to cover the increase to the 2nd? 

Born and raised.