I am just asking because of the $47K in repairs are those upgrades/renovations or would those be "Subject to" the appraisal/inspection? 

Requested new construction incentives from builder (appliance upgrade and money paid towards closing cost).

Requested new construction incentives from builder (appliance upgrade and money paid towards closing cost).

It's better to do the refinance as an owner-occupant, rates and terms are better.This way you have your first rental property, you can move to Dallas, use your VA to purchase there, and potentially have some cash.Of course, I would place the AZ house with a property manager (self-serving comment) as my perspective is that out-of-state managing is risky.Nearly every investor starts out with one property and it's not uncommon that one is one they lived in, upgraded to something bigger, better, relocated, whatever, and kept as a rental. 

Any broken pipes have to be replaced but you should go through the additional expense of upgrading the entire plumbing system to pex because it is more resilient in cold temperatures.I know politicians and media claim the earth is heating, but I am expecting more cold weather in the next ten years and people should prepare for it.

This may allow you to add that additional until without upgrading the entire building to IBC code (commercial code) instead of IRC (residential).

I only made a few minor upgrades.

If you've already done the research, and it was definitely determined that the size of the service is the issue; then unfortunately you will need to bite the bullet and do the upgrade.

If you've already chosen and they've purchased specific finishes or upgrades, especially if unusual, then they may be less than helpful. 

I think that we are leaning towards giving them the option of renewing at a higher rent, but if they end up walking we are happy to start the upgrades and justify our rents to the next people a little better.