Value add investments typically have in-place cash flow and that cash flow can be increased over time by re-positioning the property and through operational improvements. 

You can tie multiple properties and activities together to meet this test, but that alone won't necessarily allow you to turn passive losses into active, it merely changes the presumption that they are passive2nd bar:  You have to show you are actively engaged in rental activity/property management for at least 500 hours in the year.

The materials alone for commercial services have increased significantly in recent years. 

When RE looks like Bitcoin, be very wary.The Zestimate for this house is $939,904, which has increased by $50,369 in the last 30 days.

I have noticed potential agents/tenants tend to avoid going to homes where there is a current tenant.On the other hand, does the increased marketing exposure help get it rented without vacancy?

Increase value and maybe hold or refi out.  

The ADA defines an “employer” as any person who is: Engaged in an industry affecting commerce;Employs 15 or more full-time employees each work day;For at least 20 or more calendar weeks in the year.

Increase value and maybe hold or refi out.

Here are my current options (beware, some of these may not make sense – this is my first time so I don’t know the difference between smart/stupid moves yet):A) Get property appraised and get a HELOC to use as a down payment for a property with FHA loan (2-4 Unit)B) Hope home value increases and sell when the equity >= a down payment on a 2-4 unitC) Remodel property and sell when the equity >= a down payment on a 2-4 unitD) Remodel property, Get property appraised and get a HELOC to use as a down payment for a property with FHA loan (2-4 Unit)E) Save money and wait until market rent >= cashflow, use HELOC/saved money as down payment for 2-4 unitI’m thinking option E is the wisest move but I want some other opinions to see if there's a faster way – any insight is helpful since I’m just learning.

With rates moving higher, it is likely that your rate will increase in the future.