All new flooring, painting, throughout the house.

When did the HELOC on my house with ADU, the first appraiser used option one and I demanded a new appraisal where they would give me a flat value.

So in Real Estate, say your doing a "volume model", let's say sec8 housing.

Usually in the year following your purchase, the property appraiser will reevaluate the house based on the new sales price.  

Department of Housing and Urban Development (HUD) and Bankrate, the big perks of an FHA home loan are:Lower Down Payments: They typically require a smaller down payment than conventional loans, sometimes as low as 3.5% of the home’s purchase price.Lower Credit Score Requirements: They’re designed to help buyers with credit scores that might not qualify for conventional financing.

People house hacking have far different expectations than someone buying properties with cash. 

The price point for a positive cash flowing single family house rental is typically 120-180k purchase price here so I am sure you'll be able to scale very quickly here with the capital you're working with.

Good on your friend for suggesting house hacking a duplex.

You'll typically need to set up your account and get familiar with the process of working with the local housing authority.

If I sell one house per year, it will pay for itself.