And they continue to operate.  

Definitely include property management fee (Around 10% for that size) in your operating expenses.

I asked to speak to the lenders supervisor or operating manager but they said I can’t talk to them.

"Core" stabilized assets are for investors with low risk profiles who want capital preservation and stable predictable cash flow with low risk (versus higher risk alternatives in stocks and bonds...or value add and real estate development).REITS, insurance companies, pension funds, family offices, very high net worth individuals/families who have already made their wealth, etc. 

A 400k SFR in a B neighborhood rents for 1800-2000 these days. 40% operating expenses and a mortgage take you welllllll into the negative.

Renovations are also needed to make the barbershop operational i was wondering should I get a construction loan or use OPM for the repairs?

However how did you continue to operate as an illegal duplex?

You would have to know what market rents are, what actual rents are, operating data, etc.

@Elisha CramIf you are operating this like a hotel or b & b, then you'll have to factor in self employment taxes as well.

Can you get the previous year's operating records so you can see what that costs?