Also last November I bought a single family house that is an airbnb and it has a 1/1 apartment in the back that is a long term rental. 

Your parents decide they need their cash back for medical reasons.

If I am going to hold and rent, 3 beds in our market get about $300 more per unit, and are desirable in there aren't enough of them.If you're gonna hold and refi, I would make it a 3 bed.I may be just looking at it from a multifamily perspective.Let me know what you end up doing.

Given your question however, I get the sense that this might be your first time managing a project like this and so would strongly advise that you connect with a General Contractor that you can trust as it will end up saving you a lot of time and money over doing it on your.

I did reach out, waiting to hear back 

I’ve been chatting with a fund manager about our performing notes.He asked a question I hadn’t heard before...Would we be willing to buy any loans back if the borrower goes 90 days delinquent?

@Stacie Smith Back in 2009-2012 they did that often here.

You're essentially loaning someone $100, 000's of dollars at no interest for an undetermined period of time with no guarantee of getting it back, right?

Look into ways to pay, like common loans, government-backed loans, or money from private people.

I ended up moving to live and invest in Reno, NV.