Quote from @David Peschio: Raising the rent by only 3% annually, while considerate, would significantly prolong the time it takes to reach the market rate of $1,100.

However, the decision requires careful consideration of both the pros and cons, including potential mortgage complications, additional costs, and the need for strict adherence to corporate formalities.

Moving the property into an LLC can create lending and tax considerations, so you’ll want to weigh liability protection against the possibility of triggering a due-on-sale clause.

I recently been analyzing different types of investments as my net worth has increased.Some things I have taken into consideration are items such as time invested, taxes, inflation, etc.Inflation is about 3% and taxes will likely be between 15% and 25% depending on what state you live in and your income level.Therefore, the 10% return will be about 4% to 5% after taxes and inflation.If your cash on cash return is 11% - You will likely see all of this 11% as we haven't factored in appreciation / inflation.Depreciation will help you against taxes.I would pick real estate if you are still in growth phase.If you are wealthy and can live off 4% to 5%, I would go with equities.

I think there are a few considerations as I've looked into STR versus LTR.

By adding the 3rd bedrooms, we were confident that it would increase rents and our valuation considerably.

Depending on how organized your bookkeeping records are, that is also a consideration CPAs factor into their fee for services.

Here’s a professional breakdown of options and considerations for your situation:1.

I prepared by having multiple exit strategies at the ready.That's not the only thing to take into consideration, and really not a proper way to prepare.If the market downturns, liquidity dries up and exit optionality does too.

Also, the turnover on 1BR units will generally be higher than for 3BRs, so that should also be taken into consideration.