This option will allow for a 3 bedroom/2 bathroom unit and avoids the ~$45k in upgrades but will most likely cause the total rent roll for the property to be ~$200 less than projected as a 4 unit.

If we are the ones paying 100% for improvements to the property that creates appreciation (i.e. redo the kitchen or bathrooms), how do we account for this?

New flooring throughout, new appliances, fresh paint, new/refinished drywall, new bathroom vanities, new interior doors, new garage door, new ridge vent, painted kitchen cabinets.

New flooring throughout, new appliances, fresh paint, new/refinished drywall, new bathroom vanities, new interior doors, new garage door, new ridge vent, painted kitchen cabinets.

The bathroom needs a total update, but I can't decide of I want to get rid of the tub or not.

Thanks guys for the feedback I'm still in the beginning stage i recently just purchase the property I'm currently in and just finished up a small renovation on the property and just trying to put together my next moves to start a passive income though real estate I'm looking at the options of a HELOC or cash out refi the property I'm in currently 3 bed 2 bathroom built in 2010 (ranch style)paid 122,000worth around 130,000good area, decent school district ,in a sub division 

It's nicely done and is being used for office and play room.The single bathroom is between master and kids room, with an extra sink inside master.Yard looks pretty ok size...

It looks like it would need proper insulation , possibly a new roof , electrical, plumbing, central Heating and Air installed to all rooms, walls moved to make it into 2 units instead of currently the four it has, kitchen and bathrooms installed, painted on the outside ect .  

18k of Rehab: New Roof, New HVAC, NEW Kitchen w/granite, New Bathroom, New Vinyl Laminate Flooring, general repainting, and exterior landscaping.

We completely gutted the home and replaced all electrical, plumbing, walls, kitchen, bathrooms, re designed layout, etc.