Even if you can eventually raise the rents $100 a month that’s like $19,000 more a year.

I already converted out one gas heat property to electric so the only gas bill we have across over 40 properties is for cooking stoves and domestic hot water for one seven unit building.

I don't think that the extra room could be converted to a bedroom.My goals are long term cash flow to replace W2.  

Do they support the value you need to spend the money to convert it to a duplex?  

At that point, I want to refinance and take advantage of the low rates (hopefully still low), as well as start the clock on my last year at that house so I can move and get another primary residence loan in 2023 and keep the low rate as I convert it into a rental(estimated rent $1200, mortgage payment $700).

A 2BR that tiny could possibly attract less-than-desirable tenants.Here's how I would handle it - as you update the next couple of units at turnover, convert them to 1BR and see how quickly they rent.

@Ricardo TorresRegardless of how a loan is listed/structured - if you are collecting income/revenue - It needs to be reported on your return.If a property is converted from a primary residence to a rental - you get to start writing off expenses against your income.There might also be a window before you can do a 1031 exchange.Best of luck

Of course that means less expense in future years and eventual depreciation recapture.

Investment Info:

Single-family residence other investment in Cleves.

Purchase price: $73,500

Cash invested: $8,000

Sale price: $99,000

Purchased single family residence in early 2018. Originally...

@Suduk N I would wait to find a more suitable tenant and/or lower the rental price.I recently had a turnover on the Southside of Chicago and after listing it on Zillow and rentlinx had over 75 inquiries within 3 days of posting.8 prospects came to view it and I eventually found a qualified candidate.The cost to wait for a qualified tenant is always less than the cost to evict an unqualified tenant.