So the cost to replace a HWH is the same if the rents are $500/mo or $2000/mo -  so on my lower rent properties I use something like this to set my capex Item Cost Useful Life Yearly Monthly Roof $5,000 25 $200.00 $16.67 Furnace $2,500 20 $125.00 $10.42 Flooring $1,800 6 $300.00 $25.00 Plumbing $6,000 30 $200.00 $16.67 Fixtures $1,000 6 $166.67 $13.89 Water Heater $700 20 $35.00 $2.92 Appliances $1,000 8 $125.00 $10.42 Componants $1,000 10 $100.00 $8.33 Structure $10,000 30 $333.33 $27.78 Kitchen $4,500 15 $300.00 $25.00 Window $5,000 30 $166.67 $13.89 Paint $2,500 6 $416.67 $34.72

@Fong Lee  Another key component of your plan will be to increase your credit score. 

One of the critical components of the budget is putting away money to invest later.  

Knowing what you want to do and actually applying it, I found were vastly different if components are missing.

You might try to find a portfolio lender as a happy medium.Definitely have an inspection as @Chad Zaback recommended to determine the condition and life expectancy of all major components and appliances.  

You’re most familiar with it and know areas and values is arguably the most important component to all of this.Good luck!

If your subject property does not have a fireplace and comp one does, the value of the fireplace, style, quality of materials, workmanship and functionality is then assessed as can be proven in the market (people willing to pay 5K more for a fireplace like that one) and that amount is then deducted from the comp sale price to bring it in line with an estimated value for the sunbject.

Originally posted by James Gavin: unfortunately that week my wife is away and we have two young children so I am going to have to miss it.James, Family seems to be a very important component in your decision.

When I do the square footage wall to wall, using the designer drawing measurements, I come up with 574 total.I'm trying to determine if my feelings are correct that this space is worth more as as self-contained rentable space that could either be used as a MIL suite, or man cave compared to simple square footage with all the components.Of course, the added bedroom, bathroom and laundry are key components...but I'm not so sure about the sink, fridge, and convection oven adding that much to it.Is there a known formula that I can apply to this scenario? 

@Lindsay Hamner A key component for your mail success is the list.