The kitchen floor is caved in, mold everywhere and may not be structurally sound.

I plan on ripping out the old carpet and putting down hardwood flooring, updating light fixtures, bathroom, ceiling fans etc.  

Yes, the $5,000 worth of work is a guesstimate, assuming I'm only doing touch up on flooring, water damages (maybe), etc.

My parents earn 4% annually on the $160,000 project costs and $130,000 equity (current value minus mortgage) until I sell the property or am able to refinance them out of the full $300,000+ amount.Option 2: I help secure additional funding and a 2nd phase begins where we renovate the existing 1,500 sqft and build a second floor to increase the overall house to nearly 4,000 sqft.

There has also been multiple upgrades on the house such as a New furnace (2017), heat pump (2019), roof (2017), laminate floors (2015) & plumbing (2014).

Painting and flooring $10-15K go a long way and you might be able to just get it rented in that condition.   

Two or three buyers that walk, and the seller's position may soften and your "bottom-feeder" reduced offer may start to look a whole lot better if there is no one else on the dance floor – then you start making money.Hmm, Do you see a theme here?

I was looking at value add in raising rents which are currently 20% below market and doing some upgrades to floors, kitchens and bathrooms. 

Things like all new flooring, new kitchen, new bathrooms, new HVAC, new windows, etc...anything you did that significantly increased the value of the property. 

After much research, planning, goal setting, and purchasing my first two SFR with the VA Loan while moving around duty locations with the Army, I finally took the first action step of building my multifamily portfolio with the purchase of a Duplex several months back.As I begin to build momentum with my purchases, I want to develop a "template" or rather a material list with (color / type / brand/ price / vendor) that would serve as my go to for items such as paint, types of blinds, carpet, flooring, hardware, ceiling lighting etc..