Yes you have 1 roof (maybe), but you still have 2x the tenants and 2x the toilets and all the responsibility for the 3am phone calls....

It had good bones but it needed to be redesigned and completely remodeled inside and out. 

There was a guest on the Podcast a year or two ago (flipper) who talked about meeting a manufacturing vendor at a remodel expo, and ended up buying an entire container of tubs from the guy direct from China.

I would make the decision based on the math and protect for contingencies, i.e. make sure you have sufficient funds to complete the remodel (I like 2x to be safe) and have a plan if things get delayed or the market changes to make sure you don't get stuck with the higher rate for too long.

The remodeled houses in the same are which similar dimensions are normally good comps.

I'm a contractor and have done a lot of remodeling and have dealt with mold before.

Now you talk about passive.. no tenants no toilets no heavy lifting.. most of these folks though that have large note portfolios sold their fixed asset to TRULY get passive income.. and get out of the day to day..  

One unit is completely remodeled and rented out, the other needs cosmetics and is vacant.

Although the properties are currently performing if I had to grab a number out the sky in terms of repairs/remodeling costs it was be around 40K-50K.

Also, to answer your question @Jared W Smith the remodel would be for a 2500 sq ft colonial, interior remodeling only.