May be worth looking into RUBS and if that's an appropriate solution for this property.As far as your analysis:Include a renovation budget.

If you have enough tucked away to live 40-50 years on your anticipated budget considering inflation then I don't think there's anything wrong paying down your mortgage early for peace of mind.Assuming that you are going to remain in the home you are talking about, paying down principal has terrible opportunity costs if you assume even a modest return on the savings.

I've been accumulating a savings for marketing but haven't included a budget for a title company and attorney.

Wholesaler does provide budget #s, ARV and Rehab but def recommend doing your DD and confirming those numbers.  

Our original renovation budget was $40,000 but we ended up coming in closer to $45,000 after some unforeseen electrical and plumbing issues along with other scope changes regarding the large living room off the back of the house.

There is not really a "best" niche my good feller.If you are a good planner, and you can organize a crew and set deadlines and stay within budget... flipping would be good for you.If you are a good sales person, you will be really good at wholesaling.What are your strengths, what are your weaknesses... your best niche depends on that.

Budget for initial repairs.

My goal would be to put a 3.5% down payment and then use the remainder of my funds from the sale of my current house to fund my renovation budget in which I would convert the 2/1 into a 3/2 on each side.

How many units are you looking for and what is your budget/projected return?

So, with the GOE and the capital that I had saved of my own from hustles I've done to controlling my budget and being frugal, I still did not have enough for a down payment I felt was adequate to give me a mortgage I was comfortable with monthly.