(and the house next door which is 150 sq. ft. larger but the same with 3 beds and 2 baths and has not been updated since 2000 just sold for $315k).

When you have say a 300k property that rents for 1500 and you can sell it for 450k after renovation, that's clearly a flip market. 

I'm looking to provide corporate housing through the renovations of the old Kmart, about a year.

Maybe needs $5000-$7000 renovations. property is in Pa. and he lives in NC. 

Some of the larger expenses-Interior/Exterior Paint, Storm shutters for a few of the front large windows, added additional cabinets to one unit, New refrigerator from Dent/Scratch store after old one died, Laundry units that tenant pays +$50/mo for etc.

I am not sure if that is normal, these guys are in the SF Bay Area, but they put in the labor to do their renovations on those periods of days that they are off and they seem to love the time fit between the two.

My thought would be to buy all three, renovate them, raise rent, combine the properties, and then get them appraised on the cap rate rather than comparable properties. 

We are also in the middle of a major renovation in a large duplex.

OK, so here it is. I recently came across a 5 unit property for sale, a tri-plex and duplex being sold together on the same lot. 1st question, in terms of conventional financing could I consider the buildings seperate...

One with skin in the game ($$) would also allow you more flexibility and to potentitake on larger projects.