Plan 2This plan keeps the same hall-way but creates an entry way through an existing bedroom which we use purely as an office room.

I ended up going to the city and checking with storm water management specialist, he said the storm water is flowing through that lot and if I build I have to maintain it to allow the water to flow, otherwise in case of good enough rain entire neighborhood can be flooded and angry neighbors may sue me 🙂So I passed

Mine has roof, floors, hvac, appliances, hot water heater, bath and kitchen remodel, etc.

Called HUD and they said as long as it offers potable water and is a true full bathroom with shower toilet and sink, it doesn't matter which floor it's on.

Finally desided to test the waters with this property.

Wondering what some of the water bills at your properties are or have been recently ?

-- purposely threw a few pieces of bread behind the hot water heater to get roaches/bugs -- guess what, it worked-- roach infestation.      

I believe if you plan on using that capital again and again then I would absolutely take out as much as possible AS LONG AS the there is still positive PURE cash flow.

Ideally we would love to keep this as an occasional vacation spot for us to use as well, so bonus points if it is in the mountains or close to water. 

If it looks nice, but the boiler and hot water heater and anything else in the basement (electrical, plumbing) are old, you will still have unexpected cap ex on a "new" renovation.