We look at lenders (so long as they lend in the asset class you are considering) as an additional line of due diligence (they deeply care about their money and they are likely more sophisticated than you are).

I was fine with all these numbers.Then I met with contractors...First, I wanted to add a new bathroom and approximately 450 sq ft of additional living space.

I have a large lump sum saved in an investment account for down-payment and any additional costs.

I intend on sending the tenant a bill for the exact repair cost as "additional rent" (per the lease) instead of evicting in the winter and deducting from the security deposit.

If we sense there is a red flag, were asking them to upload additional documents like tax returns w2's etc.

I have about $100k in capital reserves and can leverage the 2 properties for additional capital, as needed.

Does this completely prevent the tax lien holder of getting additional gains after foreclosing? 

Incorporating a washer-dryer hookup in the main house could be advantageous.This addition not only increases the convenience for potential renters but also adds value to the property itself.

Yes, I’ll check with regional building, but curious for additional thoughts here.

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