As it stands now, the sweet spot in that area in the market for rent seems to be a little larger 2/2 house with large living area for guests.

Focus on what the rents will look like post-renovation with 4 units instead of 2, and have a clear game plan for refinancing to pull your capital back out. 

Even if you don’t have enough equity to buy in all cash, you may still have enough to make a larger down payment, which has its own benefits too.Bottom LineHomeowners have an incredible amount of equity today – and that’s why the share of all-cash buyers is on the rise.

I can add value to RE by adding a bathroom, renovating the kitchen, ADU, etc.

You could put in a range of numbers for purchase price and closing costs, renovation expenses, and expected returns and you could very quickly get a range of projected return on investments (although an excel spreadsheet could easily do this as well), but I'm sure as technology develops we will see even more sophistication in AI's ability to assist in deal analyzing.

The house, built in the early 1900s, was outdated and required major renovations.

Then an appraisal works to my benefit and the quality of the property would be very close (as I said the property I purchased had relatively cosmetic renovations such as painted cabinets).

I began the renovation process by enlisting the help of a relative and some of his friends to gut the interior.

FHA allows the construction or renovation of an ADU on the property by refinancing into a 203k loan, but the property must remain your primary residence.This stuff is subject to change, lender specific, and subject to other factors.

After conducting thorough due diligence, including a professional inspection and market analysis, the property was acquired for $72,000.Renovation and TransformationThe renovation aimed to modernize the property, enhance its appeal to potential tenants, and maximize its long-term value.