Purchasing my first property, questions regarding rehab.

[Andrew Rickli]

Hi all, 

I was able to find a great loan program through a bank that offers 3%, no PMI, no origination fees, no points. This loan program also offers the option for me to take 20% of the sales price and use it for rehab.

The property is a 1935 3,000 sq ft brick colonial duplex. In a nice and quiet neighborhood and in a desirable part of town. The house definitely needs work. Most original wood windows need to be replaced, HVAC will need to be installed, both kitchens need updated, all bathrooms can use updates, painting all around, refinishing the original hardwood floors, adding new/nicer carpet in the bedrooms. 

Luckily my fiance's side of the family has 3 builders including her dad, who all offered to help with the rehab in order to create some sweat equity. I wanted to see if anyone has done a rehab loan program through a bank, and if so how did it go?

What rehab will give me the best shot at increasing that "as complete" appraisal value? I'd like to create a "luxury home" rental, on a contractor grade budget. Any tips you can give me would be great. As a note, I'll be occupying one side and letting the tenant in the other side pay my mortgage down for me, while I pay myself each month in a reserve account.