A good book I came across is "long-Distance Real Estate Investing", by David Greene and he talked about creating value, although its title is long distance all the concepts still apply.

I have absolutely no background in real estate - I understand the concept but never really worked in that field.

It is an Open concept plan on the first floor with a 1st floor full bath with stand up shower and first floor Laundry hook-ups -- will be moving hook-ups and swapping shower for tub. 

we call this rate and term refi from value add.and that has been going on for Decades and decades and decades.BP like many other things in real estate created a new term for it called BRRR  which most folks just starting out think its a new concept.. which it is not..  

I’m kinda just doing a proof-of-concept in an area close to home that doesn’t appreciate much but does cash flow well~What this means:A.

Renovated almost the entire house:- added central HVAC- new roof- new windows- new engineered hardwood throughout - removed walls for more open concept layout- entirely new kitchen with more functional layout- waterproofed and treated cedar siding,- renovated both bathrooms- new hot water heater- new entry doors What was the outcome?

The above comments are very good advice indeed.As this is your first property, it might be simpler to follow grandma's plan?

This road leads to cashing out a pure cash deal being . . . . precarious and challenging.A simple rate-and-term refinance (or knock-out refi as I prefer to call them) "knock-out" underlying debt and because of that are viewed as a far less risky endeavor. 

Trade or Business: In defining “unrelated trade or business,” the regulations start with the concept of “trade or business” as used by Internal Revenue Code Section 162, which allows deductions for expenses paid or incurred “in carrying on any trade or business.”Regularly Carried On: The UBIT rules generally only applies to income of an unrelated trade or business that is “regularly carried on” by an organization.

You'll be able to recognize concepts that others have applied.