Unlike my current active stratagy on my 19 SFH,  I will not be able to recoup the renovation cost back out of the property value by having an 80% Loan to value pulled on the back end because the buy price is just not good enough.

As an out of state investor, I made the decision to pull my equity out as construction costs in the area are incredibly high with limited availability right now.I completely agree that luxury rentals would be my prime target for a 1031.

What does something like that cost?

What’s the best way to remodel this that will be the most cost effective?

But we have a 2.25% interest rate on this house that would cost a lot to try to buy down to that rate in today's market.Just something to think about as you are looking at properties, maybe ask the seller or listing agent if it is possibly a VA loan and how you might be able to make a deal if they have a great rate already.

Remember, the cost of a mini split is really driven by the number of head units inside and not the outside unit. 

Now that there is no overhead cost of the mortgage, how much should I charge my tenants?

My main concern is the cost of turning the property into a MTR especially with this being my first property.

The contractor will be your best resource to understand cost of the design; the earlier you identify value engineering opportunities, the cheaper it will cost to incorporate (Google: ‘Macleamy Curve’).

If the property can be respectably sold for $250 you have to be all in at around $200 including the commission and carry cost.