Cash flow, housing expenses covered, or housing expenses decreased? 

If rents decrease, I could be in a negative cashflow situation.. not ideal!

The reno will include the below:- New floors & Moldings- 2 full bathrooms (increase the size of one shower and decrease the size of the closet that is on the other side of it)- new staircase- new A/C (currently there are only window units, I'm looking to have a split system)- Install washer/dryerNow, my question relates to permits.

This increases expenses to about 46% and decreases NOI to $42500.

I have equity I want to cash out of one of mine because I know the ROE is decreasing and cashing out could allow me to buy more property but I hesitate for the same fears you are expressing.

Later, if you fund your reserve account from your cash flow, they obviously decrease your cash flow.

As you add more doors to your portfolio the vacancy rate decreases due to the assumption that all your tenants will not turnover at the same time.

Most were price shopping, looking to improve their living situation and decrease their rent.

This is even more so if the market is rapidly increasing or decreasing in value.

The amount of free cash needed to purchase a house and how "illiquid" a house can be (not to mention if the value decreases) are huge deal breakers for a lot of people, especially younger ones.