So I'm not sure what the appeal would be to investors.But if you took a more realistic home price, say an ARV of $100,000 using your formula, your MAO would be $45,000.

Maybe identify which area of real estate is most appealing to you and look in to it.

It can be hard for people to visualize what it looks like completed, but as long as the property is presentable, it is harmless to try.

Added curb appeal with landscaping, poured concrete patio and added sliding glass door to backyard to add outdoor living space.

Are there other properties in the same location you are considering purchasing or does it only appeal to you because your friend is offering to sell it to you?

That's reasonable since they a) are not tax experts, and b) have a vested interest in the sale.I've reached out to the atty who handles our residential appeals but hoping to hear from investors who've been through this, especially with multifamily.Thanks,Allen

The main thing I'd be cognizant of with your additions is that you don't want to sour the appeal of your duplex with what you add onto the lot. 

Model Home Deals - I have been reading about the increased interest in container homes for AirBNB and the St Pete Beach location is appealing. 

@Jimmy Barrett then rent your primary and buy a multi-family to live in and rent out the rest:)Guessing that won't really be appealing to you, so instead start figuring out if you want to buy Class A, B or C rentals.

@Brian Garrett I know a HML in Dayton, OH who lends at the same rates you could; however, the trick is to learn how to package your notes into a resealable format that appeals to more passive investors.