I think it was a combination of both spending too much for Contractor and level of materials.  

This could be a separate unit by itself but we're told it makes more sense to combine w/ 1st floor unit and create a duplex- Don't know complete layout of property but have been told that 2nd and 3rd are already a unit (a large one).  

So I'm way over budget on a rental and after installing the washer and dryer come to find out there isn't a drain for the washing machine.

(good Debt)  You will have a wicked combination for wealth Generation.  

Try to find a bank to do a small portfolio commercial grade loan (5 units combined) for an equity out refinance.Pro's: - Potentially the highest loan dollars due to a commercial loan basing the LTV off NOICon's:- Probably the highest interest rate due to small commercial loan (current loan interest on the properties is at 3.25%- 3.5%); difficulty in finding a willing lender; generally non-self amortizing terms meaning I have to refinance in 5 or 10 years; higher closing costs; couples the properties together, makes exit strategies a little more limited2.

So, all pipes to sinks, toilets, washer, etc. are running outside the house and then new holes were drilled into the walls.  

Add in the US bond market which is roughly twice the size of US equities market cap(1), and the collective dollar size of the combined debt/equity market is about the size of the global investable $50T in real estate.

During my dealings in my used appliance business, I sold a washer & dryer set to a rental property investor who recently had moved to my area from California, and he told me about BP and so here I am. 

Ran into all kinds of issues with drainage, electrical, moving the washer and dryer to new location, on and on.

I'd recommend small local banks for something like this.Your insurance number seems high - I'd shop around on that and combine it with your personal home / auto for a multi policy discount.Regarding your question on security deposits, yes they generally transfer as a credit toward closing.