These are the top things we change:Add a bathroom if you can near existing plumbing. i.e. add a Master Bath if a wall is shared with the hall bath.Update the kitchen: cabinets, fixtures, appliancesUpdate bathrooms: cabinets, tile, toilet, bathtub/shower if neededPut in pergo or wood floorspaint everything inside and outchange any non-modern light fixtures and fans.Don't pick fancy and expensive stuff - you start to get into personal tastes.

You have the taste now and you're gonna want more.

This is especially important if you won't be able to save as much.If you decide this deal is too expensive for you tastes, and don't want to offend your family friend by selling the deal, consider a three way deal between yourself, the current owner, and a partner.If you pass on this deal, you might want to consider looking outside of Midtown to build some equity.

Beyond the financial considerations, house hacking gives you a taste of what being a landlord is all about--it's joys and headaches.  

That would leave a horrible taste in your mouth regarding real estate and nobody at BP wants to see that!

I have also served on a local Historic Preservation Commission (the renovation taste "police" as some unhappy campers refer to it).

This is our first house, and we bought it simply to get a taste of whether we wanted to invest in additional real estate over the course of our military careers or find another investing option.

@Eric OneillThink about putting most of the money in a TIPS etf (Treasury Inflation Protected Security)Look locally for a multi family you can buy and live in using the FHA do that for a year so you get a taste of what being an active investor is like.If you like it start looking for the next one if you hate being a landlord then maybe look for syndications you can invest in as a passive partner.

If you go for quantity, you may not have enough profits (if any) after the deal is done.So again, what ever your taste is great, but giving advise to 2M people when the advise only applies to you is not fair for people reading this.Either way... 

It looks great and tasteful .