Probably too late at this point regardless, but there will likely be building code issues brought up (fire exits, clearance heights, non-permitted improvements).  

@Andy Mirza -When you mention the Groundfloor loan in relation to the REO, do you already own the REO and plan to use the funds for improvements?

Lower unit is vacant and I have not rented it yet but would easily rent for $995/mo, maybe more depending on improvements that are done.

The 70/30 split is interesting as it's usually the exact opposite (improvements are more than land), but perhaps this is in a very desirable location or a very large lot, relative to the building size.

Lots of growth and new businesses moving in, lots of activity, city council and county are committed to improving, etc.

Hey Alexander,I'm planning on doing a similar strategy that you've done with the FHA loan, improving the value and getting some equity built in once I refinance.

Looking for thoughts on how to streamline a better process or room for improvement.

Made minor improvements myself over the years of living in it, no major remodels.

I am aware that the vacation destination and vaca travel has simmered down due to the COVID-19; so with that taken into account, my intent is to start putting things in motion so that I'm operational when the economy and travel confidence improves.  

Also if your in this home for the long run as a buy and hold rental then the market correction wouldn't have a huge impact because even if we see a small correction in the market you holding long term are going to regain the appreciation down the road plus possibly any sweat equity you put into the home as far as possible remodel or anything you do to improve the property.