Our current home would rent for 2k and our piti would be 1600ish.I know we may have to live here a year or so after the refi before we could turn it into a rental which is ok, we’re not in a rush.New home would be an upgrade likely in the 500k range with 100k down. 

He keeps his income stream without having to manage the property anymore, you get the property and can upgrade it.If you can successfully upgrade one unit and the exterior and show the increased rent follows, it might be easier to get an investor to help with the others.

After buying the property and viewing it I quickly realized why noone had rented either of the vacant units: both units had what looked to be mouse crap on the floor and the other unit had a broken window (not cracked - a literal hole in the glass) and there was a hole punched in the drywall (covered using cardboard). 

Our family is growing and we're looking at upgrading to a larger home. 

Or you can call up some of the local property managers and ask what the averages are in a specific area and how its broken down by bedroom, sqft, ect.

My tenant asked to be let off of his lease 2 months early and I decided that I want to sell the property so I offered them the deal that if they paid 1 of those 2 months (~$1700) and allowed us to start making upgrades to the property, they could be let off of the lease early.

thanksA few things need to be broken out here....So the $4k of interest will be deductible On a 100k property only the building value will be depreciated.

Where it can become really tricky is that I have heard of one instance where the delinquent owners didn't file the exemption then after the sale and 6 month period were able to claim some reason as to why they weren't able to file the exemption and were able to get their property back after improvements were made.The court does require that anyone redeeming a property pay 25% interest on the purchase price plus expenses to maintain and secure the property (not upgrades).

Combined, the offers were $316,500, bringing in $3,800 from the start which we are already upgrading to make that $4,300. 

If my assumptions are correct you’re just one bad water heater/ one broken pipe/ one eviction away from big trouble.