Where your straight line is, the two floors can be blended together with new strips which will get rid of the straight line.Once you blend the floor, drum sand, then stain and seal with a poly.

Along with that, I'll most likely snag a lower blended mortgage rate by splitting the loan up

I tend to take an approach to investing that blends quantitative and qualitative analysis.I enjoy evaluating potential investments and helping others to do the same.

If you build a tri-plex are there others in the neighborhood that would allow this to blend in? 

Quote from @Marvin Michel: Hi Marvin,It looks like a solid class C minus rental with 1 br 1 bath.I doubt this will bring top of the market rents, but if you can attract 2 long term renters who get along well it looks like easy money.What I see is it looks dumpy from the street view, but its in a a pretty nice neighborhood of well kept up, MAINLY White painted houses.Maybe blend it to the neighborhood by painting it white vs. what looks like the teal-ish color so popular in Mexico for homes (although maybe that's you target market and if so leave it).It's not going to pull top of the market rents though, because for a class C minus there is no dedicated bedroom and the bathrooms in the competition are probably better.If this were in Austin (with it's high demand right now) it would rent.The giant patches on the inside walls, the shotgun floor plan, the lack of a dedicated bedroom, the bathrooms seem less than competitive.

My experience blends new construction with financial analysis, valuation, and construction.

I tell every visitor to my open house that I need to collect their email, because I know they're looking at a lot of houses and they all blend into one.

Investors should consider to trade up and out into better areas or the suburbs and find a good blend of cash flow and appreciation potential.Would love to hear everyone's thoughts on this!

My question is can someone explain to me the equity cap and the debt cap creating the blended cap?  

The more things blend together, the more spacious they seem, whereas contrast that makes things stand out will make the kitchen appear smaller.