This wasn't much of a "value add", but it will decrease Capital Expenditures after closing.

1) Inventory has seriously decreased in most markets.

It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

Do you sell the property or do you hold it and ride it outAs a extension to this question what type of strategy would you do if rents in your area are decreasing.

It might take some capital to make improvements (like adding units; adding a mobile home as a rental; adding an apartment upstairs above a current SS unit office), or just as simple as increasing the rent, or streamlining the "late rent" and eviction processes (to get late payments immediately and continue renting, or decrease the idle time between nonpayment and eviction/re-rental.

It’s the few that aren’t who account for the horror stories you might be hearing or reading about from time to time.There is a double solution to eliminate or at least significantly decrease these two risks:a.

I believe in my analysis, but there are other factors such as location, especially location, that I am not as confident about.Briefly, I plan to offer $410,000 for a 6-plex that I believe has great opportunity to add value via increasing rent (current gross income = ~ $50,225), decreasing expenses (current operating expenses ~$26,000) and increasing the value via updating the property. 1 beds are currently averaging $722 and I believe I could get $875+, the 2 bed unit is rented for $850 and I believe I could get $1000+.

People coming from Illinois are increasing the prices and rents nicely, however, stats show the population is decreasing. 

You have to have an understanding for the specific property and map your projections based on what that specific property will allow you to do as far as increasing revenue and decreasing expenses.

Any decrease will probably be marginal until you get 10+ units.