For example, I looked at one tri-plex that had recently been remodeled with two units being 2/2 @1000 sq feet renting for $2,000 per unit and the third being a 2/1 renting for $1750 asking price of $850K. 

You’re basically paying a music teacher that isn’t as good as you. 

I’ve had about a 60% turnover on units that were under and I’ve brought current.

Of course, always check recent reviews.. they tell you more than a flashy website.Size Matters: I’d avoid both extremes... massive firms managing thousands of units and one-person operations juggling too much.

If it was me...I'd check with zoning to find out how many dwelling units I could build, and I'd find what the requirements are for those units (type of house, height and setback restrictions, etc.).Then I'd find out what local builders think the cost to construct would be - just get a cost estimate per square foot for 2 or 3 different levels of finish.

Looking to add more units in that area.

The top unit and rest of the townhouse is completely unliveable without renovation, the only liveable spaces are the two studio apartments that the tenants live in.

Quote from @Jaycee Greene: Unless you already have a capital reserve fund that will pay for unforeseen, major expenses, like a new water heater, roof, or A/C unit for example, I'd keep the profits in the account until it can cover 6-12 months of operating expenses.

We want to make the jump to our first true multi fam property 20+ units.

I have four units just like this and have a decorative fireplace is not an issue, at least in my area.It is quite standard in rentals to not offer a working fireplace for cost and liability issues.