In addition, how much time do I have to find an escrow company before closing?

Sounds like an opportunity if other PMs are not good there.One additional point on delegating and vetting your team members.

Background: My wife and I live in San Jose, California, where we are renting a basement apartment from family for a great discount.

If you don't have the "dough" you don't have the "go".Based on what you are saying you will need 20% down payment for a rental + closing costs + operating reserves (in cash).Most people will not have this--some will do what they need to do to get it--some will not, some can not.A good first step might be to save up as much as you can for a year in a special savings account--by living frugally for 12 months.Then explore down payment assistance programs in your area for first time home buyers of a primary residence--if you qualify (and the home is in a good area for your 'Family" vs Gunshot Alley, then buy a home for yourself and your family.Getting on the track of being a homeowner will give you some additional strength, after a few years of ownership, re-asses your situation.Or work 2 jobs and save the 20% down, closing costs and operating capital you will need, but if you do that and your wife divorces you for it, then you will be in a worse situation than you are now.In the mean time, [1] read Rich Dad Poor Dad, and [2] have fun with your family doing things together (while you have the time), rent a boat for an afternoon, go on a pic-nick, hike in the woods, etc...

My plan was to gradually raise rents to market rate over a two-year period, which would generate a cash flow of $200 in two years with a 7 percent interest rate.The seller is firm on the purchase price and has cash offers as backups if our agreement falls through, but we are currently under contract.Pls let me any additional info needed, as this is my first post. 

But I also have many 2/1s attached to studios where I make the 2/1 pay the entire bill and their rent is discounted 100$ to market which usually ends up in them profiting a bit monthly.

Renovated each unit as they opened up which created additional value through increased rents.

If you add additional bedrooms, I would also consider the bedroom-to-bathroom ratio so you don't have too many roommates needing to share a bathroom.

I need additional funds to finish my basement, and to start builiding a new house on the lot next door to my present three family.

❌ Previous Rent: $1,100✅ Post Reno Rent: $2,000 (plus utilities)Original Underwriting: $1,900$900 monthly rent increase$10,800 additional income per year (excluding utilities)We spent $35,000 for a premium level renovation.= 30.8% return on investment (ROI)We target an ROI between 25% - 35%.