It's probably not worth the extra percentage if you don't have correct time horizon to recover in case you lose the principal.

It's worth it especially if you are a full time investor.

good concept Bryan, flipping vs buy and hold are keys to how wealth can be generated by using two different methods of investing aka envesting as i like to say, i'm a newbie in this industry my plan is to buy and hold rentals and later refinance the property and reap the benefits of the cash flow to purchase rehab and flip discounted properties that i find along the way, my strategy may be different than most but most of my educational coaching suggested looking at every deal as if it were flip and or rehab, i agree with Bryan, if i can get the cash flow and equity that buy and hold offers then that is the strategy that works best for me, but if i run across a flip/rehab that is worth my while then i execute accordingly but leverage is a important aspect of the buy and hold strategy will be implementing in my world.......good luck on your investing journey

Many people have no idea what their home is worth.

Why not use an agent instead, as long they'd think it would be worth their time?

However everyone has a different view. 

I know without a doubt that even if I'm first to view and offer, the seller will get multiple offers, some sight unseen within the first 48 hours.  

The current homes are worth about 450/unit, the row house will cost about 200 and add about $1750/ Month in rent, when done we are looking at a new value of 675-700.

I am currently in the process of filing my 2015 tax return (extension) where I can remove those expenses to increase that year's self-employment income, but that income would be taxed at the 28% bracket so not sure if it's worth it. 

No, the house isn't worth it, but he'd have a difficult time finding a rental at that price and he knows the house inside out, of course.