It's the nature of markets that once nearly everyone is in agreement that something is a good idea, it's probably about time to take the other side of the bet.

If all goes well, we plan to put it on the market late January or early February although I totally know Murphy is creeping around somewhere. 

Your best bet will be to refinance  the property to pay off the HML.

You bet!

And on that note, for a small duplex that's about 1100 sq ft total, what is the HIGHEST rehab cost that you would assume worst case scenario?

I’m no expert at all, but I think your best bet is probably to find a partner to whom you can bring a deal.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

VERY... that's why hard money totally dominates the lending landscape in fix and flip in our market. or cash.

So essentially, I would be paying 300 in utilities plus 75 (difference between the 900 rent and 825 income from upper unit) for a total of 375/month.I own and manage several SFR's and multi-family properties, but have never gotten involved in a lease option.

@Derek Williams I just did some searching and I think your best bet is going to be a spreadsheet.