Increase your income, decrease your expenses, and save money.

Sounds like you either need to decrease the purchase price or increase the rent.

Newburgh definitely has some rougher areas and the data shows a decrease in both total population and home values over the past decade, which is something to consider before investing there. 

The great deal part comes into play when you can find ways to increase income and decrease expenses on the property.  

That decreased friction comes in the form of no hearing and local government approval.Less red tape doesn’t mean no red tape…What becomes clear after adding all of the eligibility requirements is that not many parcels qualify for SB9 and even fewer make sense as an SB9 candidate.To avoid boring you with a breakdown of each eligible category, I’ll summarize here.

The HELOC is likely going to have a floating rate that may increase over time making your property cash flow decrease. 

Should I rip the band aid off and raise all rents to market and deal with exodus that will follow and assume the increase in rent in the customers who stay will cover the decrease in rent from those who leave?

Yeah, we did not like refinishing floors this time around since they were refinished last in 2020, and we know that their longevity is decreasing with each refinish. 

But my reasoning is that the COC would have to be a LOT higher next year for my AFTER TAX investment to make a higher return, and factoring in the decrease from 80% to 60% bonus depreciation.

I would rather wait a month then decrease it by 25-50 for a tenant I would not want to keep long term.