Remember that every 10k increase in NOI, you're getting an extra $125k in property value (using 8% CAP rate) which can be extracted through a later loan.Have you run the numbers without the inhouse manager?  

You gotta ask yourself, am I buying this to make some money and have a "jewel" property that I can feel good about having in my portfolio, or am I buying this because I believe I can extract the maximum value and dollar amount out of this 1.3 or 2.6 million?

This implies that you will not be able to extract the full $150K equity through a typical refinance. 

Also is there a method of extracting the equity from both properties in a single transaction?

It takes some work and some vision to see things that others miss because they aren't looking for it in this way, but you could pay retail and actually still make a profit by spotting and extracting this sort of hidden value.

. - you can manually extract this information from Zillow if you know how to slice it.  

These scripts will pull specific data from the source they are coded to extract from.

I'll look into those forums for Single Family and see what value I can extract.

The slope of the land and how much dirt to be moved also comes into play as it can get expensive to level for site work.Additionally inventory levels of similar locations with vacant buildings where developers or tenants can go in cheaper and faster might be competition unless you have one of the best locations in the area.Basically what I am saying is that there is a lot to this and you need a specialist to help if you are trying to extract any additional value out of the property versus it's current use.

I've seen way to many multi family properties just get into that death spiral of a slum lord and horrible tenants and it's just one band aid after another until finally the owner extracts whatever they can and exits.I personally would want to be buying something at a little lower price, perhaps redeveloping, etc.Build value rather than extract value.If the assumptions above mentioned check out and you're happy with those returns I don't see a major hurdle ----  big however though is that you're only outperforming your cost of capital by maybe a percentage point?