I find that converting the property into a duplex is a lengthy and costly process, and I want to start renting it legally without going through a long process, because I've spent for rehabs and don't want to put in more for now.

You buy cash, do a cosmetic rehab to force equity, and then refi out.

What else are you doing to maintain security remotely during the rehab phase?

So you really need a GREAT spread between your buy and sell price after the rehab.  

What kind of loan(s) did you use for the purchase, rehab, and refinance?  

Have you ever done a rehab before?

What should make ready cost? 

- Why does it cost more to change the oil on your car at a dealership versus a quick lube?

Realize you may be better off using cost segregation to achieve greater tax benefits immediately for purchases of STVRs.

They are feeling less certain about their job security, their 401k and IRAs are down, costs keep rising, etc.