This combined with the fact the insulation would be coming out of the two walls we needed to fix, reenforced the decision to insulate the entire main level with closed cell spray foam.Once the subfloor was up, we learned the unevenness of the slab was more so than anticipated; The stairs to the second floor were not hung properly - I'm amazed they never moved in the past 20 years.Since we were now into more than a full gut on the main floor {with the framing repairs}, a decision was made to "patch-up" the second floor, rather than gutting it as well, as an effort to reduce the newly forecasted spend. 

And they can work incredibly well combined with the primary residence exclusion.  

My plan is to update/modernize this condo and rent it out next summer (we're close to the University of WA) - my first condo is already rented with positive cash flow.Although I'm happy with the position I'm in and how things have unfolded, my only regrets, with the obvious benefit of hindsight, are:1) Purchasing my first condo with a "consumer" mindset (what are MY neighborhood requirements, how long is MY commute, etc.), rather than with an investor mentality (what is the expected appreciation rate, what are the rental comps, etc.)2) Purchasing my second condo with a realtor, as opposed to getting a license and completing the transaction myself#1 is no longer an issue as I've shifted to investor mode.  

The art gallery idea might actually work pretty well if you combine it with the residential conversion.

To find vacant properties is a combination of running USPS data for vacant and then tracking down the forwarding addresses.

Those factors combined with the RMLS will make for a very frustrating time.

If you can get one or both of them for tax assessed value, you can combine the lots.

Plus, as @Dan Pohlman suggests above, a high CLTV (combined loan to value) could also preclude any additional loan and is potentially dangerous.In my view, your second best bet behind getting a cash partner would be to wait and get a conventional HELOC on your home, once you get your credit straightened out.

Changing out the hardware on the tub to match the shower head you select will give the whole thing a more modern, upgraded look. ( You might consider changing out the vanity hardware to match as well.2.

And then there is the fact that the loan will probably be at a higher rate of interest than they can probably get in another investment with similar risk and management concerns.So, in this case, I'd suggest one of two things or a combination of the two, USDA financing and/or seller financing.