I max fund my policy to allocate more towards cash value then the cash value is invested into index funds (S&P500) with a floor of 0.75% and ceiling of 13%. 

@Mason Bear I think trying to sand and mud over the interior walls would be a short term solution, as the floor is pulling apart in the same area.

Unsure of existence of asbestos wiring, lead paint - the interior seems to be plaster walls with hardwood floors.

Does anyone think rates will get any lower than that? Seems when doing IRRRL research that’s the lowest all the lenders go and have been sitting there for awhile. I can lock that now or wait a bit. I have a 2.875 so I...

The hypothetical plan: Turn floors 1&2 into a duplex for our family.

For example, here in Las Vegas I have added new floors, paint, and various upgraded to get higher rent. 

I'm working on a thin deal sub to now but will go ahead because I like the neighborhood and floor plan and its a ranch on a large flat lot.What I look for;   margine between rent and PITI to be no less then $300. 

We added a bedroom to the 2nd floor apartment and renovated using nicer finishes usually used in that area.

We rehabbed both units to include redoing drywall and insulation, refinishing hardwood floors and adding LTP flooring, adding a new bathroom vanity, replacing some fixtures, andredoing the front deck and adding the back deck for separate access to the back unit.

For example, we have 3 different floor options if we're looking to rehab to our C+ to B rentals and we have 3 other floor options for anything that is B+ and higher.