With just 5% down (yes, I paid PMI initially), we moved into the main bedroom, used the small first-floor room as my office, and rented out the other three bedrooms on Airbnb and Furnished Finder.

Their previous lease includes a portion of storage in the basement with laundry access(also in basement).Current set up: tenant occupies floor #2 with separate access to the basement for their laundry and storage.Future plan: reno basement and remove storage/laundry access for tenant.

Perhaps refinish existing wood floors rather than install new LVP to save money.

Upgrade/Renovate update Kitchen, Bathroom & Flooring which would cost us about $50-60k with furnishing, keep it as MTR or STR then refinance or **midterm rents 2400 and up with comps; then Refinance or….2.

The property has had about 2" to 2.5" of downward settlement on one side of the house, which has caused drywall cracks and uneven floors. 

It's an 860sf unit, so it would be right around the $2.00/sf mark as a LTR, if not a bit higher.I inherited an existing long-term tenant in the first floor apartment, so that unit isn't in nearly as good shape as the fully renovated upstairs unit. 

Did you only remove the drywall and flooring and not do any testing? 

We do have 1 mid term rental where we allow pets, but it's all hard surface flooring, fenced in backyard, and has pretty durable furniture. 

You still have flooring, cabinets, bathrooms, plumbing, insulation, paint, etc, so all that cost remains the same it would seem. 

Newer appliances, free nice laundry, 2nd floor, yard space, storage, clean bathroom, included heat, installed window A/C.Appraisal suggested the unit was worth 2,300 a month, which I felt was a bit high, so I listed it for $2,150 with no move in fee and a 2k deposit.