Owner Occupied 2 family- Home Improvement loan

[Kevin Warren]

Hi Everyone, 

 I purchased my first property 5 months ago. It is a 2 family in St. Louis- tower grove east neighborhood, 2 1100 square foot units. My occupants were paying $1100 a month however they have agreed to pay $1275 for the 1100 square foot 2 bedroom with a spot for 1 car in the garage, full backyard, and a parking pad in lieu of me doing a major project, window replacement.  

I am living in the upstairs unit and expecting to live here for at least 2-3 years unless I find another 2 family to purchase. The upstairs unit has outdated appliances, countertops, and a bathroom but was still renting for $975/month.

I have decided to move forward with the window replacement project, fortunately, I have a professional window installer who is giving me a good deal on the window project. I expect to spend around 15k for the 18 windows and a custom exterior door replacement for the basement. 

I am planning on borrowing the money for the home improvements which is why I am posting this question. My primary question is about how I borrow money for the improvements. Is a standard home improvement loan my way to go as an owner occupancy? Any tips or advice?

Also, should I consider borrowing more and replacing the old AC units from 2008? The old AC units are using freeon that is becoming illegal at the end of 2019, this means charging costs will be super high next year. The AC unit in my place upstairs ran at a rate of $200 a month during the heat of the summer. Before adding the nest thermostat, my prior tenant had an electric bill of $397 one month. I could also borrow more to add the updates appliance package, then pay cash for the updated countertops and bathroom renovation over the next year to increase rent value on the 2nd unit to $1200-1300. 

Paid 262k for the property in May. 

Looking forward to any advise or further questions. Thank you to anyone who is willing to read all of this and provide advice, it is must appreciated.

Sincerely, 

Kevin