Pros:Fewer days on the market (aka reduce vacancy) from additional marketing time and lining up the tenant before the existing tenant has vacatedStaged homes rent better than one w/o furniture (although rare the tenant has good enough style :))Ability to perform an informal "move-out" inspection, which provides a better idea of the turnaround time before the new tenants can move-inTenants may tidy up the place a bit and get a head start on their move-out process (rare, but worth pointing out)Cons:Reduced rent --> assuming some of the above bullet points are a stretch from reality (aka staged home and tidy up the place), the clutter and style may detract tenants from wanting to move-inInconvenience to the existing tenantsCoordination of the showings requires contacting the existing tenantsI know many SFH will list the property while other tenants are in it, but you must take it on a case-by-case basis, and it's heavily dependent on the existing tenants.

My most respected friend and colleague @Nick Britton can also help you get the most out of your existing property.

Can I get away with the existing wiring?

My guess is that rate (assuming its $390/yr) is a pre-existing owner policy cost and your costs will be higher, almost double.Now if the price you quoted is per month, I would not look into it further, as that is a very high cost.

The goal with the 36 cut is to get the existing floor to bare wood, take your time with this cut.  

If you are 100% certain and the data backs you up, I would probably invest in slightly higher end (by existing standards) homes, as those will most likely be more desirable as the higher income neighbors move in.

Pressure in the past that doesn't exist today?

Leasing agents not attempting to retain existing commercial tenants,owners/agents milking every cent possible from a lease and actually driving business outCommercial vacancies is a sure sign of declining economy, lost jobs and subsequent home foreclosures . . . its a good measure of the community economic health.

1) Scrape popcorn: $25002) Add a tankless hot water heater: $2500 (opens closet in house and resolves code issues with existing tank)3) Pergo XP flooring through all house besides bathrooms

There will be plenty of voices (the most dangerous of which are the ones in own our heads) saying "it can't be done, the market is saturated, there are no good deals left, etc."