@Daniel SistoA couple factors will dictate the amount you can take out.  

The bathroom was going to be remodeled anyways, so that isn't really a factor here.Based on all of this, I felt comfortable asking the seller for a price reduction from $187 down to $177.  

Lots of competition and lots of people factoring in price growth.  

So we're now able to calculate just how much we are saving them, and will probably factor that into future rent increases.

Also, the appraiser from the VA will be the determining factor on any required repairs.

Any major factors?

That will give you a better understanding of your water bill expense when your factoring your cash flow and if that's going to make or break your deal.

Besides, you have a duplex, not a single family detached home.If it's a subdivision, you can have external obsolescence (effects on value from outside factors).

Yes, but you will need to factor in influences risks, degree of management and costs of holding assets, investor's time, experience and knowledge being similar, differences in liquidity, marketability of the asset as well as growth or appreciation expectations. 

When we speak about equity build, that refers to factoring in your 120K debt shrinking as you own the home (thus there is real "cash" you are "earning" if you hold long enough).Equity build is important - aside from tax benefit and appreciation, it's why you investing in a corporate bond at 4% is less appealing than in a home that yields 4% after debt service.