But keep in mind if your using money you cant afford to get back then buying action property might not be appropriate for your current endeavors and its better to just buy open market were you can do proper due diligence and know you have a build-able site.

I appreciate the tip about the current market conditions.

Recently I've had 2 guests that were messy and accessed the two rooms that weren't currently rented.

These currently aren't fancy units. - Value add - When building additional units, what steps should be taken to determine how many can be built? 

There are situations where it is more beneficial to end the current lease and start a new one (ability to change lease terms, rent amount etc), and there are situations where it makes more sense to just do an addendum.

Adding the current mortgage and utilities would be roughly $1,350 resulting in a profit of $650/mo.

I am currently enjoying my 1k monthly income with no debt, and I am nervous about leveraging.  

If it does vest, then the 2nd isn't currently $8k and the paperwork could further help your case.Other option is to completely ignore the equity in your residence and look for creative financing on the property you want to purchase. 

If they don't agree, then you'll have to wait until the current lease expires and then move them to your new lease.Read the existing lease closely.

You can always just increase the liability on your current carrier.