Whether or not you should furnish both as bedrooms, or one as an office depends on what your competition is doing. 

Garrett Sutton (the tax professional that actually does Robert Kiyosaki's taxes) actually has a few issues with some of the very advice that you've been given in other responses on this thread.  

I know some great syndicators and I personally partner with investors on deals and typically get them returns in the 15-25% range depending on the type of deal. 

Depending how much you earn you can step up those savings by getting a side-hustle.

Cash reserves totaling 6 months (principle, interest, taxes and insurance [PITI])2.

You have to have lived in a property 2 of the last 5 years to get the tax exemptions.

Now its destroyed.The amount of take home pay with the 5 units is practically Taco Bell wage after all the taxes insurance and expenses.

Based on what you described the LLC is likely the tax-payer on title.

Depending on your time period for construction, a heloc could be a great option as it provides flexibility and then you can always reuse later down the road.

Hi Jonathan, My partner and I are trying to get the knob and tube rebate, but we are seeing that it is income dependent and you are disqualified if you make $75K or more for two incomes.