I've already renovated one of the bathrooms, and I’m planning to paint the interior, update the kitchen cabinets, possibly sand the wood floors, build a fence is a corner lot and increase the rent for the room since my tenant is currently renting the entire 3-bedroom, 2-bathroom house for $800 a month.

Still renting and value keep increasing Lessons learned?

Alternatively, can you use either unit as an STR to increase cash flow even further?

I ran the numbers on the deal knowing that I would break even on cash flow in the first year with minimal rent increases but significant cash flow in year 6 when the 401k loan is paid off.

BUT....With the rates dropping ( and they will)  Buyer interest will increase and the markets will immediately start to level first , then increase( prices) as both buyers and sellers see the market stability and value.

By carefully timing their sales and purchases, they not only deferred taxes but also increased their cash flow significantly.

You may think that photo is the best photo for your listing but the data shows that when the other photo is used the CTR increases.

But Metro Phoenix is a leader in rent increases.

The units all have tri-paint jobs with ceiling paint, a nice wall color and super-white glossy trim on everything else. 

Their taxes have increased dramatically over the past 4 years, 150-200% increase across the board.