Please DM me - I can give some pointers on how to get started including in the Multifamily space.

Be sure to include one of more exit strategies in your LLC documents.

You have to include the cost of your time and the work, especially on a "scary house" is daunting indeed. 

Do this quickly because some counties have a time limit on when you can appeal.I recommend you research the market for:- Comparable Property Sales- Condition of your property, including anything that may affect your property's value- If you are really serious, an expert appraisal may be worth the effort.

Also do you have any debt?  

In addition to the different tracks @Chris Seveney descrubed, there is also good information on creative financing and seller financing (including what to avoid).

any lender wants to know how you plan to service the debt.

Again, if your $250k is true, and includes all the electrical upgrades, new plumbing runs, potentially new foundation pour (since I assume the existing garage slab is not capable of supporting a new two story house), I am guessing since I don't know the market, but assume you will have a lot of equity by completing the project.

This way the broker can search hundreds of lenders (Including Easy Street Capital) instead of just hoping that one lender can get you a good deal.A direct lender can work very well for Conventional loans, but if you were hoping to get a good deal I would look elsewhere Or you could search for hundreds of lenders here on BP or online yourself and avoid paying broker fees..

Many of our clients, including myself, have done that.