I am indecisive on what may be best since our current home has just had a complete remodel so it should hold up well for a while before significant rehab costs are needed, however, I may be able to use the equity in the home for higher ROI properties. 

The vision of a freshly updated home is so seductive, it's easy to forget that the project will most likely come with aggravating delays and unexpected issues. Think about it. When was the last time you heard about a ...

The buyers inspectors literally praised the work we had done throughout, but a week ago the CL-100 wood infestation inspection came back noting a small bit of non-structural exterior sheathing damage along the bottom of the back wall behind the vinyl siding due to moisture :( The good news is we are 99.9% sure the issue was caused by rain water coming off of the roof and landing in an area that had standing water before we brought in some dirt and gravel to resolve the drainage issue during the remodel (townhouse is on a slab). 

I remember working for a real estate investment group and they mentioned taking the removed faucets, toilets, fixtures, etc to places that would give you a tax right off.

If I were to remodel it, in to two additional units would I need to notify the bank? 

.), but larger ones are probably not something I want to really get into at the moment (full kitchen remodels, full plumbing or electrical replacements, etc.).

Was the remodel performed by a licensed and insured contractor?

All 4 units completely remodeled, new roof, new plumbing, new electric, new windows.

If the home is nicely remodeled and/or larger than the typical 900 sq ft 2/1 in the area, you might could get $1250, but I think you will be disappointed with vacancy and turnover at this price point.

Let me first provide a little context on where we are at with the deal and the overall condition of the property.My intention: Primary residence- 2 yrs, then rentalLocation: Denver, CO (Very high growth neighborhood, this deal was almost all dumb luck...)Condition: House is B Class, recently remodeled, 3br, 2ba, huge yard, carport, shed, new roof, everything about this house is above and beyond what I consider move in ready.Asking price:  $399,000Days on Market: 27My Offer: $375,00 (Accepted)Contingencies: Inspection, Appraisal and Seller allowed to live in the property for 9 months after closing while new build is being completed.The seller is in a position where they need capital to finance and complete the build that has already broken ground on their new home.