. - 2 story house with very small rooms and and 2 steps down, imminently as you enter the front door.- Gated community and in a reasonable HOA. - The home is 2 payments behind and already got a letter from the lender about future foreclose.

Are you sure you can add 2,000 SF on such a small lot? 

After she gave me the numbers, I calculated the rehab to be around $16,000 which I was fine with.I saw on the app we use to track expenses that there were small charges for the rehab which I was fine with.

It simplifies the process since Zillow handles credit, income, and background checks for a small fee paid by the applicant.Background Check Services: If you prefer not to use Zillow, consider using services like MySmartMove or RentSpree.

Direct marketing. 

Plus, small cash flow can compound over time.

Small multi-family property is where I would start.  

Does anyone have any advice on which direction to go?

On most small MF that get listed for sale, the owner lost interest years ago and management attention is in a steady decline until something triggers the sale.

There have been a few people that have done Sub2’s that come on here bragging about it.. those that do come on here bragging about seem to be  helping someone promote their product/mentoring , have a product or mentoring they are trying to remote directly or indirectly themselves, or simply do not understand the landscape of Bigger Pockets site.