In current condition it would definitely fail.

I reckon there's ALREADY a Duplex where you want to live, BUT, it's in TERRIBLE condition, so the Seller would sell it at a severe discount (say, $350k) to avoid those rehab costs, and their circumstances are such that it doesn't matter to them about the Buyer potentially being able to turn it into a $600k Duplex once rehabbed.I reckon: Look for your forever home (but one in pre-rehab condition) - NOW!

But I also see how this increases your risk because people know you might not know what you're really doing.For my OOS investmentI Idid purposely look for homes that were in better condition and had big ticket items already done so that I wouldn't have to do them.

@Celena LathropThat train of thought still runs inside me but I believe I need to keep on increasing my credit score, pay off as much debt as I can before I am able to make that type of purchase right?

You can easily pour $10,000 into a renovation that will only increase the sale price of a home by $4,000.

Buying a rental, even a turn-key, increases your income.

Somehow, my cousin is convinced that if something worse were to happen to his parents (they are 90 and 88 yrs old with increasingly challenging health issues), and they would to be cared for in a nursing home, that the state of NJ would step in and claim all the assets to "pay" for their care.  

There's always ways to increase response and conversions, but remember 20/80 rule.

I am new to rental property investing and I do see the age of properties ranging 7- 20. if the condition of the property good, would I be able to process to pursue 20 years old one as well?

When you say that refinancing limits your ability to write off interest, do you mean that you won't be able to write off the additional interest increases or do you mean that it will also hinder the previous amounts as well?