Yes, I have seen a good number of deals like this.

This would require seller to bring cash to closing.

This is because the earlier years see a large jump in IRR due to the leverage used, however this effect diminishes in later years.2.  

I thank God for my 20 years of experience in real estate What made you interested in investing in this type of deal?

Hi Mary,It is true the lender will not usually give you the rehab funds in advance, but this does not mean that you must complete all of the rehab out of pocket.

Google search gives me these super wide ranges and mostly talking about adding a bedroom in a SFH, which I'm not sure if applicable to this situation of "moving/subtracting a bedroom from one unit and add it to another unit in a duplex". 

As @Max Yuan stated, this is a numbers game.

@Jonathan Greene infers from your use of the term "lease" that this tenant started off on with a lease for a period of time such as 1 year and then when the lease ended no new lease with signed and the tenancy continued as month-to-month under the original lease terms.

This shift warns of potential hardships if a recession leads to widespread unemployment. 

This property showcases strategic planning and flexibility within my investment portfolio.