I am also curious how folks are dealing with appraisals as appraisers don't view these properties as duplexes and I've heard of investors having issues with cash out refinances not hitting their target values where had the home been designated a duplex (lets say in a two detached property scenario) it would have easily appraised in their target value. 

While there are some markets I feel are so saturated it is near impossible to be successful in todays market (Orlando), in most competitive markets you can be successful if a) have reasonable expectations and b) do everything right (price, location, pro design, pro photos, etc etc). 

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

The key difference, though, was he spent months carefully getting to know the local architecs, reputable builders, and even a couple of niche design firms that specialize in modern builds for mid- to high-end buyers.

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Since I'm taking such a cash hit, I asked the sellers agent if they would be able to designate some portion of the sale price ($200k?)

It's designed to protect assets in the event of lawsuits, negligence, etc. and it only applies when there is underlying insurance coverage. 

If you want to change the design, then do upon closing.

BiggerPockets is full of resources designed to help you along your journey, whether you are just getting started or a seasoned investor.

Do they value nicer finishes and design or is that additional cost lost on the typical tenant in that pocket?