The value add was through the rehab that consisted of a new roof, updated the fuse panel to a breaker panel, new LVP flooring throughout, minor bathroom updates and paint, repainting the entire interior, adding new hardware and paint to existing kitchen cabinets along with new countertops and sink, new stove and rangehood, and lots of overall minor deferred maintenance.

I went Driving for Dollars today and found 9 “possibilities” within 1.5 hours, so properties that fit my BRRRR strategy do exist.

Compared to conventional, the closing costs will be somewhat higher, the origination costs could be between 2.5-4pts, upwards of $2k for an appraisal and environmental docs is not an existing rental unit... but you could be looking at rates in the low 4's provided none of the 5 of you have low credit.Cheers!

This works, however, after taking out our existing loan balance (691k) we are left with about 85k to cash out, even though we got it appraised at 1.1m

If you qualified with your credit file, the loan would be based on the fair market value of rents or existing leases, whichever is lowest. 

Yes, if you are looking for existing homes Realtor.com and just filter (muti-family) in the property type.

In general, if your existing three units are running well and you will cash flow nicely when you leave and there is limited cap ex, I would look into acquiring another property and leave the basement for storage, laundry.

My brother plans to continue to live in the existing house while I move into the back house for the foreseeable future. 

What does NH tenant law say about existing leases?

The problem with it is it's hard to find properties with the right zoning (they exist) and also where you can get the right kind of insurance (due to wildfire risk).