You would loose the potential for appreciation on the Colorado home plus capital gains tax from the saleIn Scenario B (Refinance); your monthly cash flow would $800 ($300 from house hacking & $500 from Colorado)  You would maintain the potential for appreciation on the Colorado home & also avoid capital gain taxes.  

I've been trying to get a handle on market selection, but for me to be able to do it well, as a part-time investor who has a day job (and then some) feels kind of like picking individual stocks to me.

I plan to post later (separate post) on the overall housing stock, which has aged because of low building volumes in many counties.

I'm completing renovation on a duplex on the same street now and will cashflow over $650/door.I have a few questions on how to think through this deal:-Do you feel it is too risky to purchase a low cashflowing asset and maintain while slowly renovating the units upon lease expiration to turn the property around over the next 10-12 months?

I have a few questions:1) What accounting software would allow me to maintain multiple properties and allow me to invoice my tenants for rent, utilities, repairs, etc?

To me, there is some value in paying an expert to get all the pieces done right and go thorough the ropes on what to do to maintain the protections offered by an LLC.

For comparison my second worse performing property is worth ~$430K and rents for $2700 and market rent is likely $2900.I also think the acreage will be a hassle as a rental as it is tough to find tenants that will properly maintain large yards.I think the rural location will not help finding renters or getting a good rent and the size of the unit and property will mean high cap expenses (my estimate would be >$400/month cap expense).The reason your home does not work well as a rental is because you purchased the property to be a good home and not a good rental property. 

The stock is drying up here.

There is often a happy middle ground where you are not giving up any legal rights but also maintain the trust of your tenants.

Hi @April Fletcher,A lot of housing stock in Oakland is very old.