But rents are way below market and we will be renovating and driving rents where they should be.

Make sure you know what comparable properties are selling for, and what renovations are necessary to get top dollar.

One reason we will not have enough of our own money to invest right away is we've used equity in our current home to renovate kitchen.

Does anyone see any issues or have advise with seller financing on a quad and a hard money lender for the down payment and renovations ?

Instead of renovating what you have, go buy what you want.

Or is there an alternative such as renovating/adding another bathroom to the property if the space allows for it?

When I was a young mom, I was buying houses and taking my toddler with me when I renovated and did drive by's.

Purchased for $7k and renovated for $5k, I wouldn’t say there was pitfalls but learning experiences in all stages of the project.

I used a FHA loan to get in to a HUD home, lived in it and completed the renovation, leveraged huge equity  to finish a second renovation that was technically a new construction loan, sold the rehab, got a partial lien release combined with a re-finance from the FHA loan, pulled $30k in HELOC, bought another rental, moved, and then rented the original SFR...then on and on...lots of moving parts.It's a lot like feeling your way through a maze where you are at right now, but don't be intimidated.

-what are market rents in your examplesIf you want my simple answer, I will take more units, with the idea that I have more economies of scale on expenses and more leverage on renovations and raising rents.