I think it was a combination of both spending too much for Contractor and level of materials.  

This could be a separate unit by itself but we're told it makes more sense to combine w/ 1st floor unit and create a duplex- Don't know complete layout of property but have been told that 2nd and 3rd are already a unit (a large one).  

(good Debt)  You will have a wicked combination for wealth Generation.  

Try to find a bank to do a small portfolio commercial grade loan (5 units combined) for an equity out refinance.Pro's: - Potentially the highest loan dollars due to a commercial loan basing the LTV off NOICon's:- Probably the highest interest rate due to small commercial loan (current loan interest on the properties is at 3.25%- 3.5%); difficulty in finding a willing lender; generally non-self amortizing terms meaning I have to refinance in 5 or 10 years; higher closing costs; couples the properties together, makes exit strategies a little more limited2.

Add in the US bond market which is roughly twice the size of US equities market cap(1), and the collective dollar size of the combined debt/equity market is about the size of the global investable $50T in real estate.

I'd recommend small local banks for something like this.Your insurance number seems high - I'd shop around on that and combine it with your personal home / auto for a multi policy discount.Regarding your question on security deposits, yes they generally transfer as a credit toward closing.  

If I added a co-signer to the loan, would we be able to combine our DTIs?

We are looking for around 600k.We have combined income of 18k month, 160k to put down credit scores of 700/770 with no foreclosures or defaults. 

rental units.Founder and owner of Another Way LLC, a Real Estate Investing consulting company.RealtorsLori and Doug Davis, Centry 21 Over 41 years combined experience selling Real Estate.Sold hundreds of rental units throughout Wisconsin.Actively working with many other residential Real Estate Investors.Work as a team so much more flexible with scheduling.AccountantRachel Lindemann, MBA Owner of HQ Accounting & Tax Serices, LLC Accountant since 2008Currently works with multiple Real Estate InvestorsExperienced with creating and maintaining LLC’sReal Estate AttorneyJonathan W.

I would expect those combined to be closer to $600 monthly, because you will likely have a lower class of tenants and you will be dealing with 4 separate units, which means 4 separate bathrooms, kitchens, etc to maintain.I cannot get much more specific though, given that I do not know anything about the layout of the building or the specifics of the neighborhood.