I also figured that when he parents do pass down the road, we could refinance through a bank and pay off the sister her half of the home, while still keeping the house and the rental income.

I live in a community where half the people never lock their doors.

In a nice suburban neighborhood a large bathroom with a standalone tub can add a lot of value, but the addition of a second bathroom is also important.Do you have an option of making a slightly smaller master bathroom and having a half bath or smaller bathroom with shower stall in the other bedroom? 

You would still need to recognize your half of the gain on the sale.

A nice but expensive duplex on a beach or in an expensive area might be ideal, if you can swing the other half out of personal funds. 

On my properties about half of the mortgage payments go into escrow for taxes.

Interestingly, the premium for the single-family rental is about half that of the 4-unit property.I’ve owned rental properties for over 34 years, so I have a solid understanding of how premiums and coverages typically align with property values.

I am going with glass half full  BP is doing great and now has large enough participation to warrant this Venue !!

(I know, nothing is certain but just hypothetically) and all cash out loans are not created equal. if you have a lot of equity you can borrow up to 60% with the lowest rate possible, which would be close to a half point lower then borrowing up to 75% loan to value. 

In the first half of 2024, Nassau and Suffolk saw 45% and 43% increases in inventory respectively.