The house has 2 bedrooms/ 1 bathroom on the main floor, and 1 bedroom/1 bathroom in the basement.

Flooring, countertops, paint, ceiling fans, stole all the mini blinds, ect...They considered that "normal wear and tear" and denied the claim.I then get a letter saying they are dropping coverage for too many claims thus putting me on a wild goose chase for insurance 1 month before my annual renewal. 

Anyway I have about $135k available on my heloc. sale price on the duplex is $279,000, so 20% is about $56k. the house is perfectly livable as-is, but at $60/sqft and properties on the block selling for $140/sqft i think there is room for some forced appreciation. the building is currently a three-floor duplex townhouse, one unit is the ground floor and unit two is the top two floors. all floors are basically the same floor plan. the second floor has a kitchen/laundry stacked above the first floor kitchen/laundry. on the third floor, the room is in the same place and empty, but utilities (water gas electric) are already run and in place for adding a third kitchen/laundry, so conversion to triplex would be simple as installing cabinets and appliances and building an exterior staircase up to the second floor rear deck. the three 2bed/1bath units would rent for $1000-$1200 a month each, conservatively. we would have to find somewhere else to live for that to happen, but that is our 1-3 year goal anyway. would it be better to make the bank loan smaller with a bigger down payment from the HELOC?

It has the possibility to have a separate entrance for a 3rd floor apt.

Making a very nice student house or a great single family house with the potential of a 3rd floor apt.

The development is slated to open almost due East of Kyle, TX.  

Replaced the carpet with LPV flooring, added new windows, and fixed minor issues with the property.

Replaced the carpet with LPV flooring, added new windows, and fixed minor issues with the property.

This property had 3 fireplaces and the middle floor fireplace has a large crack in the stone at the back of the fireplace.

For example, bars on the first-floor windows might be very important for one tenant pool.