This is not $120/ft material, which is how this is priced based on the $3,500 that was purportedly spent.

I am a 21 year old investor based out of Brooklyn, NY w/ two investments properties (payed off mortgage) that I manage and I have been pushing forward and researching and reading and learning as much as I I can about real estate.

This should be your own conclusions based on your underwriting, not someone else’s. 

If you do, you are missing out on most of the advantages, and rationalizing bad deals into good ones based on "%'s" instead of dollars. 

I have over 40% equity based on loan amount of $200K and general market value of the property at $400K (unsure what assessed value would be).I'm thinking I'm a candidate for PMI removal.

The tax treatment of your land sales would typically be determined based on when each parcel was sold and whether they were held for investment or business purposes.

The truth is, it’s based on a multitude of factors and ultimately comes down to what makes sense to you.

Appreciation is based on the $1M, not the $200K. 

And again, this is my market and area of town, but tenants like the character of the older home with the tall base boards, hardwood floors, arched doorways between rooms, etc.  

Do you have every potential renter complete this or only select one renter based off the pre-screening process?