Not sure if the rents can be increased?

If you have great credit and good income, you could borrow money on a personal loan, remodel the whole building to increase value, and then refinance to pay off the personal loan.

The other assumption or gamble here is over time the property will appreciate and rents will increase to a point where I no longer am losing on the investment.

@Basilio Morales an appraisal is usually no more than $495 unless your buying a fairly big house.

@Federico Morales "my parents' tax guy has listed one of their properties as a loss, but without reporting the income for that property"So you are saying that he has only reported the expenses for this property and not the gross rents?

Federico Morales it’s a crazy phenomenon.

In addition, this market is on the upswing, and home values are increasing steadily (so in addition to solid cashflow, potential appreciation looks good).

With the purchase price amount, your taxes will definitely increase.

I am leaning towards doing the 30 year in order to increase the cashflow.

The lower purchase price helps me REFI more money out of the deal and increase my COC return but doesn't affect the cash flow after REFI....