We do all of our properties the "right" way and don't mind taking a little extra time to make sure our tenants are happy.

Hello BP, while i'm looking through different online offers to get a better pictures of the multifamily investment, i notice in my area there is a lot of 2-2 & 3-2 bedroom bathroom.For now, my plan is to invest in 2-1 unit only to young & old couple (for the sake of argument), what can i do with the extra said bedroom &/or bathroom

In most cases you'll find everything you need here on BP so don't spend any extra money elsewhere.

What does he say the extra amount is specifically for?  

Another unit then vacated & within 25 days I had it rehabbed & rented for an extra $250/month plus they now pay all their own utilities.

You can offer the property and maybe extra time and they would be glad to go 50/50 or better if there is a good spread.

I think the tendency for most people on flips is to spend too much money on renos and if you are in an A+ neighborhood, there is much more upswing available to handle the extra costs.  

@Vince Futia  check with your local laws to see if they allow an extra amount for a pet deposit (not allowed here in NJ) and definitely ask for another $25-$50 per month depending upon the number, size and what type of pet it is.  

If I refinance as a consolidated mortgage, I can put them on a 30yr, 5%, 5yr balloon, and create an extra $1750/mo cash flow to reinvest.

@Rich Hupper, here is a thread that discusses IRR - even though the thread title is a misnomer:- https://www.biggerpockets.com/forums/311/topics/25...I don't know that "loss to rent" is any specific extra cost that you haven't already allowed for (but @Will Barnard might respond).