Yeah, the interest increases your debt but if you can buy a good asset now you'll be amortizing that debt much more easily with multiple income streams.

I'd see if the tenant is interested in staying in the place for another year, maybe with a small increase in the rent (let's say from $775.00 to $800.00). 

I copied this from a search on real estate ROE:Return on Equity (ROE) ratio calculates the amount of return generated in a particular year on the total amount of equity invested (or trapped) in a property.The amount invested (or denominator) is calculated as the initial investment (down payment) plus the entire increase in net property’s appreciation and the entire decrease in outstanding loan balance incurred prior to the year the ratio is being calculated.Cash-on-Cash Return is a similar calculation, but since the two draw backs of the traditional Cash-on-Cash Return are that property appreciation and principal debt payments are not factored into the formula, Return on Equity adds these two components to the traditional Cash-on-Cash Return calculation.A property’s net equity increase is calculated by determining what the “Net Sale Proceeds after Taxes” would be at the beginning of a year, and then again at the end of the year.

Might be cheaper money depending on the bank and increase cash flow. 

If it is below market rent - there may be an opportunity to increase it when you acquire the property.(2) . who can provide a loan for such 4-6 unit multi-family homes?

So I will have cash reserves set for the property.Current RentsUnit 1*: 615 Unit 2: 775 Unit 3: 775 Unit 4: 600 (Will occupy this one)= $2165 monthly rent* I plan on upping this to 775 once in my possession, and eventually increasing all of them to 850 once it's turnover time.

The six and eight are 2br/1ba and the 16 units are 1br/1ba.They are all about 5.5 caps and have potential to force appreciation and increase rents, roughly the same amount proportionately.

Is there a way to increase your income where you currently work? 

I would like to pick up something I can add value to by either increasing the property and/or driving rents up.

It was suggested that I install luan to increase the height of the floor and try to match it to the hardwood, but that is a lot more work and I am not sure this is even a good idea.What would you suggest I do to these floors?