Is the item being repaired/replaced/improve efficiency.

I dont see how you can setup that small of a house as a 3/2 and a 1/1, unless the 1/1 is more like an efficiency. 

The extra dollar is worth the efficiency, quality, and sanity. 2) Fire bad labor.

The property consist of 2 efficiencies and 2 one bedroom/one baths. 

With a commercial loan and the LLC, it will be the lowest cost, most efficient solution.You can then add an Umbrella policy over the top of the Commercial policy if you are looking for more than $1M in General Liability coverage.The insurance companies who will be a good fit for this portfolio will be a separate set of companies than the ones you would use for Homeowners or Flips. 

@Aaron Stern, I'm pretty sure about the 1031, but I'll leave it up to an expert to settle it.The reasons you don't just keep your current property are:You can greatly increase your cash flow (almost doubled in the example above, PLUS you had $675k to invest elsewhere.Your SFR has no efficiencies of scale, so you can do better by getting more units under 1 roof.Your current Return On Equity (ROE) is terrible--1.5%, just for the cashflow (let's leave appreciation, depreciation, mortgage pay-down aside for the moment).

And any guidance on first few steps to try to up-skill as efficiently as possible would be great.Interested especially cause sounds like you came from similar fix and flip background to me.

Any ideas on how I can be more efficient here.

We do this primarily by building extensive networks to helps us get the best deals, honing in our rehab processes, buying things wholesale, doing the same work on every property every time to maximize efficiency.

Err, well as many units as you can (4 is ideal) same loan and the cash flow and efficiencies really add up.