You will also want to factor selling costs into the equation.

At the current NOI, the asking price of $450k equates to a 7.2 cap rate. 

I understand getting a new appraisal after the rehab will increase the property's value, I'm not understanding where refinancing fits into the equation.

It is a great tool that provides you access to many very intelligent and experienced real estate investors to lean on for advice and some direction -  but ultimately it will be up to you to take it out of the website and start implementing strategies that equate to action oriented moves.

I hear ya ... having kids definitely changes the equation a bit.

Your house has appreciated an average of $3,000 per year that equates to 1-2% per annum.

We then are able to refinance out 95 to 110% of that money and repeat on the next equation.  

My attention is still focused on the DFW metroplex (mostly the FW side of that equation) and Memphis.Good luck though, my research said it was a solid city for investment.Chris

All other things equal, I think fewer tenants would equate to less of your time spent managing the property.

I know some investors say I should take into consideration appreciation, however I don't count this in my equation prior to making an offer.