And the reason why your "tale of two halves" will play out as you described.Demand:  This has actually been high almost all along, but rent growth hasn't materialized in response due to high levels of new supply. 

I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.1.Renovate and Buy Another Property•Invest to renovate our current home adding a bedroom to the house given our family outgrew the house.

You may even find one or two who won't mind if you shadow a project they currently have going. 

All things being equal, I would accept these applicants, but I would require them to pay a deposit equal to two months of rent.

It will take two months to turn it around and get it rented.

Worth noting that most firms will do two types of studies (although they may be named differently) - detailed engineering and modeling.

Wholesale, foreclosure, and seller financing can work too, but I’ve noticed that careful analysis and having reliable local contacts often deliver the best results over time.So as you two gear up for your first flip, how are you balancing the potential risk with your long-term goal of buying rentals?

Just by having those two traits they are in the top 25%, based on my experience. 

Am I correct in thinking that with the two units vacating soon, the property will be entirely vacant in 2 months if you also move out?

My current portfolio includes two 3-Bed/2-Bath Single Family's in my home state.