I am at my limit with my local bank so we pay a little more but there is so much juice in these deals the extra financing cost is irrelevant.. this is the 16th one of these we have done this year..

There are many factors in small multi family that can really juice up the deal; however, there are also many that kill the deals cashflow as well. 

Doesn't sound like the juice would be worth the squeeze for me, so looks likely a basement rehab only then renting the two units separately is the best route.

The common denominator to succeed in this point in the cycle is off-market deals under worth belly to belly with sellers or quality wholesalers. 

Then rent out bedrooms to juice up your cash-flow.

Many of them will be going belly up if the situation continues. 

Looking at this I would say that personally $46,500 to only get a 2.6% cash of cash return isn't enough juice per the squeeze. 

True private lender is someone you meet belly to belly generally speaking

Or if a city passes rent controls saying what you can lease your property for and nerfing your revenues down that LTR goes belly up fast, like what Saint Paul recently did. 

I would push back on rolling guarantee and also have language in their if it is sold / assigned they must receive your approvalYou want strong financial tenants in their not some newbie who overpays and then goes belly up