To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

I usually assume it will take 60-days to lease up.

If you want send me the property PIN, i would be interested to take a look at the mortgages on it assuming this is in Lackawanna county. 

I have also run the scenario of putting extra principle payments into the conventional mortgage, but we cannot put away as much, because we have to bank for large purchases down the road.This spreadsheet takes into account that my wife takes a drop in income in the next few years to care for babies (growing family), also factors in major expenses on the rental property, and assumes that we have 10% rate on the HELOC to be conservative. 

However, in most markets I would assume an additional full bathroom would not only command higher rent, but would increase the equity and appreciation.

I'm going to have a floor guy take a look to be sure, but let's assume I can't re-sand and I'll either have to put new flooring over the old original floors or just tell the next prospective tenant, that's how the floors will be, which lowers the appeal of a very rentable apartment.   

I assume the first house hasn’t appreciate much if at all and that’s why you didn’t sell it and take the tax free gain that could take 10+ years to overcome as a rental?

What a great find, though - a single family turned into basically three streams of income, assuming you get an ADU permitted!

It would be nice to cash flow and I assume that is rare so appreciation is the goal within the next 3 to 5 years.

Note: I say this also assuming you can afford the negative cash flow, but if you cannot, then get out as soon as you can.