I wouldn't recommend installing without pulling a permit in order to ensure it's installed up to code.If you truly want to save your tenants money, put a timer and a wrap around the tank.

So here is how I would set this up: Kitchen: Appliances - $6,000 Cabinets - $10,000Countertop - $70-110/sqftSink - $1,500Faucet - $500Cab pulls - $500 (or $6-10/pull) Install - $2,000Flooring: Floor product (unfinished): (expect to pay 4 - 10 dollars per board foot for anything quality) Floor finishing (sanding, coating etc) roughly $3/Sq ft (as long as you are using a standard coating (polyurethane) if you want to go higher end with an oil or stain expect this to jump to 4-5/sq ft Bathrooms:Demo: $/hour x expected hours Underlayment: Schulter Shower System (approx: 500/shower enclosure) Tile/grout/thinset: 6-10 sq/ftInstall: $3-6 sq/ft Lighting and Electric: (pricing includes installation)   Switches: approx $30/switch  (this assumes a mid range Leviton 3-way dimmer) Outlets: $10 (TR Leviton duplex, GFI where needed and duplex/USB combo in Kitchen Island and a few choice locations) Lighting:Surface mount approx $150/fixtureCan: approx. $250/fixture (assuming old work install by electrician)A little more on why I do it this way: Kitchen: You can figure out exactly how much your kitchen is going to cost before you start.

@Syed Lateef Congrats on almost ready to pull the trigger.  

That would be a pretty good buy if you can pull it off.

I own a couple of homes in an HOA and have had such a bad experience that I am looking to pull out of HOA's all together!

The public MLS is tough to pull comps from.

Can a cash out refi be completed without pulling it out of trust?

That being said, trying to be as constructive as possible here, what you outlined in your post is a VERY advanced strategy that VERY few investors pull off successfully. 

Nothing like going through all the analysis and deciding to pull the trigger but not even thinking about something as simple as this.

Would I be able to then do a cash out refi on that home for 78% of its appraised value, or would I only be able to pull 78% of the equity that I have in the property that the seller is financing?