I would not refinish soft pine -- too soft...it's not considered a hardwood, and everything dents it.  

., we are already going through OIL crash and no recessionThere is no more sub prime mortgages in marketFed is soft in their policyIT is in bubble again... but that can not affect real estate, actually real estate was high during 2000 crash.I am really interested to know which shoe will fall next and what will be the reason..?

I'd be very grateful to connect with anyone who has done this before and/or for any cost templates (with soft cost and hard cost breakdowns) that may help provide me with a roadmap as to how to approx a project of this size.Sincerely,- Rick

I'm curious what your estimated holding time is and soft costs on selling, assuming those would affect the estimated profit?

I'll start by saying: I know I'm too soft on the tenants. 

(No structural changes)Repair rear deck and front porch to usable condition and paint apr. 250 sq ft total (remove & replace 4, 2x6x8 deck boards)Floor repair where needed near back door (attach 3 2x10x8 floor joist to existing floor joist to reinforce soft floor) install new subfloor in area of repair.Drywall repair for bathroom, closet, laundry and master bedroom areas where needed (up to 200 sq ft with knockdown texture)Skim coat areas of house with dated wood grain style texture and re-texture where needed (approximately 1200 sq ft) Install bathroom vanity, sink, hardware etc. (36" vanity)Install kitchen cabinets (8 base, 6 wall)Install appliances (dishwasher, microhood combo, electric range, fridge)Install new plugs and switches entire house (14 switches, 4 GFCI, 36 grounded tamper proof plug ins)Install all light fixtures interior and exterior (15 total)Install counter top for kitchen (white quartz slab / granite or tile 32 sq ft "never formica for our flips")Paint interior walls and ceiling one color and trim one colorInstall interior doors (pre-hung 6 panel @ 10 doors)Install interior trim base, window and door trim (approximately 1200 L/F)Install windows where broken @ 2 (24x24 bathroom window, 36x60 bedroom window)Install all flooring, carpet (500 sq ft) laminate (1,000 sq ft) sheet vinyl (100 sq ft).

Fresh paint with soft modern colors. 

Both options will be soft money so my suggestion would be.1.

Here's an example of a property we bought two years ago in 92105, with numbers rounded for simplicity and using your 3.5% interest rate example (an investment property rate you won't get today w/o big points, BTW):Duplex purchase price $400k - 60/40 building/land split.Depreciable basis = $240k ~= $8700 depreciated per yearRent = $2800/m = $33600/yMortgage = $300k ~= $10300/y interest (year 1)Maintenance = 8% gross rents ~= $2600/yProperty Taxes = 1.1% = $4400/yInsurance = $700/yUtilities ~= $2400/y ($100/unit/m water+sewer)Vacancy and Loss = 5% = $1700/yMisc Stuff = $500/y (mileage, other soft and hard expenses to be claimed)Total Income: $33,600         /         Total Expenses: $31,300Y1 Retained Earnings (P&L Profit): $11,000Y1 Tax Reported Profit: $2,300Y1 Mortgage Principal: $5,800Y1 Balance Sheet Delta: $8,100  (8.1% Y1 ROC)A couple notes:Capex is not included here because depreciation has been taken on the balance sheet (in theory, they are equal values - in reality, that capex cost will very likely be less than the depreciation in a market like ours).This is year 1.  

In the end the truth will come out so no need to mislead them from the start, they will appreciate the honesty.With cold calling I have found that a soft and gentle approach quickly extinguishes an irritated call recipient.