I locked in the 3.25 at 5K lender credits with the agreement that it is subject to change depending on what the appraisal comes back as.

I know that getting a PM is a touchy subject on here - especially for all the PMs that are on BP.  

Lock in that low interest, 30 yr note and see where you stand after 2 years.Financing option: seller financing, subject to, wrapsNothing wrong with option #1 if the numbers make sense.

I frequently see 4-plex's that have original kitchens from the 70's and 80's, have neglected maintenance over long periods of time, or even have leases that are several years old without any increases in rental rates.

I have a duplex in Seattle I live in that would work well, consider getting a few others in other West Coast locations I frequent

However, only your accountant knows all the facts and the sale may potentially not be subject to the $3,000 annual loss limitation if it is a section 1231 / 1245 / 1250 asset.Furthermore, many taxpayers think they have a loss when in reality they have income(they forget to reduce the basis by the accumulated depreciation).In addition, you may have suspended passive losses that may be released upon sale.

I'll add some red-neck talk for the white-collar folks who have made a comment on this subject.

I frequently hear, "You can only count on initial cash flow."

It's so subjective (what someone considers major vs light rehab, and the areas you could buy in) that it's hard to nail down a specific number for you on that without narrowing down several things.4) Depends on where you are looking. 

Are the subject properties actually in the wave of gentrification or are you pushing the line by a number of blocks?