From the information you've shared here, seems as though option 1 would be your best bet.You should consult an architect and run a more in-depth analysis on the construction costs if you're seriously considering rebuilding.The cost of demolition and construction on this could be north of $600K.

Hi Lynnette,Thanks for clueing me me in to some of these "hidden" expenses -- these sort of things are exactly what I was looking to learn about.Since some of these expenses can't be easily found, how do you avoid letting a seemingly good deal turn into a bad one after purchase?

I have researched it and it seems pretty straightforward using key check for the landlord tools. 

Given our current hot market, some of the prices for available multi-units may not seem logical, and others are underpriced, so your list price wouldn't be your actual purchase price. 

Organizer is Roger.Texas Tuesday DFW Real Estate Mastermind- https://ttdfwrem.com/ Has met 1st or 2nd Tuesday of the month Venue has changed cities and locations several times, but seems to be currently meeting in Ft.

This number seems extremely high to me, but we will use it as an average to remain conservative.

The budget seems low on the new build. ( I'm not an expert).How did you find this deal? 

Be careful about selecting a tenant, but it seems to me that maybe your current tenant may be locked in at a low rate.

After a few times, the cycle has now become intentional and it seems to be a good balance to make all that work WORTH IT.

He seemed stumped despite acknowledging banks often offer construction to permanent financing of 75% LTC up to 75% LTV (In some instances even 80% LTC up to 75% LTV, although many banks adjusted their criteria due to market uncertainty).