Investors utilized either DSCR loans or lenders that allowed short term rental income to be calculated for income purposes. 

It sucks that people in your circle don't understand or can appreciate what a life-changing decision you made by buying an income producing property! 

You'd have to run the numbers, but generally adding a 2nd story doesn't produce the kind of rent needed to justify construction cost + loss of income for the 12 months when its shut down.

I think all of it is manageable but some people have lofty ideas and have been oversold the idea of "passive" income from companies like Rich Dad, BiggerPockets, etc.

Sale date is Feb 6Bottom line: 50k investment for $1,000 month rental income.

Section 8 is a program for low income tenants to get government subsidy of some or all of their rent (at market rates).

What I would encourage you to do is to compare how much cash you currently have invested out of pocket in the deal and also calculate what the cash flow is for that property.Cash flow is the income (rent) minus all expenses: mortgage payment (including principal, interest, taxes and insurance), average maintenance costs, capital expenses (new roof, hvac, water heater.

So the question is would you rather make more interest (you’re getting a higher return than you can find today elsewhere.)Or would you have your money back sooner and give up the interest income.

We did not need help in deciding what our investment niche would be; we needed help in creating and implementing a tax strategy plan for a married couple composed of a high-income earner and a real estate agent and business owner.

So 50% of the income generated would get hit with UBIT.