I guess that's why I am asking :-) @Jason DiClemente  That's a really good way to Capex. 

Furniture and renovation financed by HELOC, $27,000 @ 4.5% over 5 years = $500/moRent - $3,000/moPITI + PMI - $1350/moHELOC loan - $500/moUtilities - $350/moMaintenance + CapEx - $400/mo (Roof and windows are new, exterior is brick, HVAC is all-new)Cash flow - $400/mo (18% COC) This return does not include equity capture of $260/mo from mortgage paydown (boosts return to 30%), appreciation (anybody's guess, but at least the rate of inflation), or the biggest of all, rent avoidance for our daughter of at least $550/mo (boosts return w/o appreciation to 56% annually).Besides the great returns, another reason for buying the house is the example of living in a money-making house to get our daughter comfortable with house hacking. 

The property is in south FL and the broader area has seen a few large companies move in over the last few years, and housing values have gone up substantially.I guess I'm just suspicious about whether we really found something good or if there is something about getting into Commercial Office space (ie, trend toward home offices, technology changes, rent-a-suite places, etc..) that we are missing.

. :) I guess I’m in the cash flow quadrant.

I guess I was persuasive because, without me asking, they insisted on giving me money.

Guess it doesn’t pay to rush into the renovation.

I guess it may be common in Texas but I am not desperate, I will wait for the right deal. 

I guess I need two spreadsheets with each scenario trying to determine which to go with? 

I am guessing you are looking at a 2 or 3 bedroom model, which there are some on the market.

Your note on valuation makes sense as well - I guess I need to get to the bottom of everything else the average commercial lender is looking for.