If the HELOC is at 8-9% and you're only cash flowing $225/mo, you're basically breaking even until you get that vacancy filled and rents raised.

However, this usually comes after having a proven track record for you and your team.That being said, great deals are hard to find but easier to raise money for because lenders and investors will see the opportunity and want to be a part of it.Someone once said a lazy person uses their own money.

Add value through layout changes, not expensive finishes.One strategically placed wall that creates an extra bedroom can raise Section 8 rents by $200 to $400.That’s the cheapest ROI move in the entire business.Luxury upgrades won’t do that.

I should also add that the house has extreme sentimental value as it is my husband's grandmother's house and we are the 3rd generation to be raising a family there.

Also raising a 2 month old puppy...Excited to learn and connect with you all!

I've heard from some who swung for the fences because that's how they presented projected returns that differentiated them from other investment opportunities, others were in the business of transacting and had to find deals that could work to  keep the lights on and keep the fee machine running, others struggled to raise equity and were forced into higher leverage debt to fill the capital stack along with a ton of other reasons why a sponsor may have elected to go with the riskier debt structures. 

You can raise rents later.

In the past we have always bought property that after improvements we could raise rents $200 a month and get decent cash flow.

While I ended up putting together our programs by trail, error, education, knowledge, I hired an individual with experience in raising capital for real estate syndications, and thru a number of in person and phone meetings, as well as email, reached the point where she has a much more thorough understanding of our business.  

If it's breakeven or close, the 15-year doesn't feel safe.The other piece -- the 3% rent appreciation assumes you actually raise rents every year without losing tenants.