She was an incredible sharp older woman but also knew that the house hadn't been maintained for several years.

That last part is probably the biggest factor in my book, and what essentially currently defines the real estate financing industry: the cheaper the loan, the more painful it will be.

I value cash flow first and taking a large negative hit each month is painful. 

I want to add a bedroom on my primary and the list of things they want me to do would add about $10k to the project (and I already have solar, now they want me to add sprinklers but I have vaulted ceilings so that's not practical, they don't care) so I feel your pain on regulations in general.Of course it causes a knee jerk reaction whenever home prices are increased in a region that has a major housing crisis but I think the thought process being applied here is more long term (and I frame it this way because as I have said I have mixed feelings about the mandate, so I can only present what I think the policy makers intentions are). 

You’ll be Replacing your carpet every couple years and it is a pain in the butt.

What about asking tenants if they have any pain points they would like to see addressed?

It can be a pain in the A$$ with the rehab restrictions and approval process but I see a ton of potential there especially with the continued gentrification of downtown. 

I was hoping some sharp minds here could give me some ideas in my situation.I own a vacant city lot in my city, it's right across the alley from my home.  

That was one of the simplest projects we've done on the house, but definitely not worth the headache (and back pain).

Just know you're starting down 10% plus pain and suffering.So what are the terms you have now and what will the new loan look like?