We also have some deals in the pipeline with more extensive rehab in the biz plan and we're currently renovating around 500 units at various projects.

Will most certainly help you scale once you have a larger portfolio. - 2 of @Brandon Turner's books The Book on Rental Property Investing and The Book on Managing Rental Properties.

I'd imagine since everything would be brand new and my father and I have been doing renovations on houses that it wouldn't cost me too much to turn the downstairs into a couple of 600$ a month apartments.

I would make double the profit on these but no equity and probably much less resale value and yearly massive renovation.

In the midsts of a renovation (BRRRR) in a nice (A-level) neighborhood.  

Our residents for the most part could not come up with a larger security deposit.

I would think people have an easier time paying a few grand more for a house (getting a larger mortgage) than having to scrape together cash after they close to sod a yard.You are also asking to track in more dirt without having grass in the front.

I'm a 25 year old software engineer and new real estate investor who's already taken the plunge and done their first deal: I recently closed on my first flip with my partner where we renovated and sold a 2-family in Brooklyn.  

. ** and yes: I don't know how you are arriving at 50k But go see it: based on comparable sales arrive at an ARV (after repair value): then get the estimated rehab cost from a reliable contractor: Then get the ARV $: times 65% : that will give you X: minus repair cost : and that will equal your offer priceFor example: ARV is $100k : times 65% : or 65k minus 20k in renovations: so your offer will be: $45k You can't lose with this formula. 

1 – Rental Return with Cash Purchase Purchase: 120k+Renovation: 35kAll-In Budget: 155kAll-In Budget: 155kMarket Rent: $1300/month% Towards Expenses: 30%Annual Cash on Cash Return: 7.04%2 – Re-Finance After RehabAppraised Value: 185k 75% LTV - $138,750Cash Still Invested - $16,2503 – Rental Return After Re-Fi Cash Still Invested - $16,250Market Rent - $1300/Month% Towards Expenses: 30%Annual Cash on Cash Return: 67.2%We’re very excited to break ground on this project and once we begin construction, we’ll be sure to update everyone on the progress.