There are cheaper one’s in D/F areas but I would be careful as those can create a laundry list of additional issues.

I did need to spend part of the spring redoing the deck railing, painting exterior trim, replacing some deck boards etc.

In addition in virtually all markets the 1% rule no longer works at a reliable profit indicator at high LTV.  

A major expense can wipe out years and years worth of "cashflow'- A property that cash flows on paper is different from a property cashflowing in reality...There are many times additional expenses to be aware of that may come up in some markets that you are not familiar with...in my case some items were pipes freezing over and much higher vacancy than was figured in initial calculations.- Markets that have very high cap rates as a whole such as 8% + are typically markets that are perceived to have much higher risk and likely will have little to no appreciation at best and more likely would depreciate.

DM me if you would like additional information.

But we aren’t sure if that is the best option to get additional funds.

This is generally recommended, in addition to insurance, regardless of the size of your portfolio to mitigate risk in the event of a lawsuit.

i'd take the 3 'more expensive up front' options, for each one list the difference in closing costs between that option & the 'cheapest up front' option, then compare your cash-on-cash return for each for the initial additional investment vs. the saved interest in year one. that would give you a starting point for if the extra investment up front is worth it or not per whatever your normal desired COCR is for any investment. but another thing to consider is, how long is the rate fixed for?

They charge by the entry, at least they do at mine so the tax return is one set fee like $250 or something then to add the duplex would be an additional fee.

Additionally, I am a General Contractor in the City of Chicago, and I help rehabilitate properties for my clients.