Now it's not really "profit" because the expense should have been factored in but we'll leave that for another day. 

Did you leave it as one, how did you handle the bill?

This leaves you a buffer..... and time to fly out and inspect it your self.

Something to leave behind my little ones, you know.Thank you for any insight and keep pushing.Rich

Request the tenants leave, flip to 3 bedroom, and rent to new tenants at $986If I convert from  2 BR to a 3 BR, I've calculated a payback period of 2.3 years... here's the high-level of how I came to that number:Annual Opportunity Cost:3 BR vs 2 BR Rent = $2,790My Time (expect less needy tenants) = $1,183TOTAL OPPT COST= $3,973 <-- This is a favorable numberCost to get unit ready as 3 BRTotal to flip = $7,551 (includes paint, new floors, converting basement to bedroom, etc)  2 Months lost rent = $1,510 TOTAL UPFRONT COSTS $9,061 <-- This is an unfavorable numberPayback Period =  $9,061 / $3,973 = 2.3 years (Note if I'm conservative in my nubers, this becomes 3 years)Couple more things to note, they're set up on re-occurring payments and have not missed a payment.

Trying to buy as an owner occupant, leaving your family behind to live under a separate roof, strains the limits of credulity.

I've raked up a backyard and filled up 4 full sized 50 gallon trash bags of poop after a tenant only being there 1 year (so yeah, I've seen some sh**,  pun intended).The dog isn't necessarily a deal breaker, but you should for sure get a decent sized non-refundable pet fee up front, plus an extra monthly fee that will cover the renovations to put the place back together when they leave. 

I have already been told by my lender that I would be allowed to rent it out since it will have been one year of residing here and I am leaving the area. 

Bringing both units to the projected market rents in area still leaves me in the red.

My agent found me a full duplex that has had the interior completely renovated for $350k, the larger side has a 1 year lease for $1,450 a month which would leave me paying $860 a month for my side if I don't rent out the other bedroom.