If you currently rent for $2,500 and take the $1,750; you have additional positive cash flow of $750 for your rent situation.Have you thoroughly looked over the capex potential issues? 

Here are some additional comments to add - please be sure to read the last comment regarding making contributions to both an IRA and 401k.Can I set up a SDIRA if I have full-time job?

Despite no additional renovations being necessary, our efficient strategy and swift turnaround led to a same-day sale at $225,000.

Regarding insurance adding additional umbrella insurance is great idea. 

Knowing what NOT to do is often the most valuable advice!

You may not be able to break the contract this year but would recommend getting additional estimates going forward if you feel it is expensive.

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!

@Ryan VienneauAre they able to set-up your credit cards as additional "accounts payable"?    

In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.  

Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.