Hi Aubri,I did something similar but to ensure we were in compliance with local laws, I called the local county building and planning department and had a meeting with them to discuss my plans (this was done during the purchase process) to get approval.

Regarding the improvements, we just did new kitchen, we are planning on doing the fence soon and we have added a couple of things.

I would get in hold of an accountant to make sure that you are able to do everything that you are planning on doing.

See below output with a few thoughts:- Would need a few more data points to be precise (rehab estimate, duration estimate, property taxes, insurance, utilities, HOA, maintenance, etc.).- Assuming a 12% HML with a 3% origination fee held for 4 months, with a 30-year cash out refinance at 70% LTV and 7% interest rate, where the property stabilizes two months after refinancing (6 months after purchasing), you would (i) nearly breakeven on the cash out refinance and would generate $455 in monthly net cash flow in year 1, increasing annually, assuming you rent for $7,000 in year 1 and increase rent 4% YoY.- See below and let me know if you would like me to send you a copy.

Can you modify your plans to avoid the full removal? 

Oh yeah, back to house 2 real quick, i added a 2nd bathroom and since all the rooms had door ways meaning it wasnt an open concept floor plan, i was able to add a 5th bedroom. i than started renting out every bedroom in that house while mainting one as my own.

She knows the plan and she is in control.  

We are trying to put together a business plan that works for the both of us.

If people are getting free electricity and water, they tend to be a little less frugal :) .Then check on insurance costs for a MFH and add that to your projections.Finally, talk to your contractors and see what requires permits, what their experience has been in getting them to pass inspections, the timeline and the cost.Factor all of these into the decision to move forward or leave as is - maybe advertise it as a 4/1 with a home office with outside access and get more rent that way.One last point - I hope that the addition you mentioned was done with permits and is reflected on the tax rolls because if not, you may open a can of worms you wish you had not.

Property Manager assigned.Moving out of state, not willing to sell the property right now.In addition to renters insurance and landlord insurance, which direction should I go as far as protecting myself?