Since you're a newer investor, I'd expect your rates to be around 12% and 3pts with 10% down payment.Your comps should dictate what you do to your house (in regards to that extra bathroom), not your own personal opinions or anyone else's.See if you can bring a contractor (to get bids) and inspector (to find out what's wrong with the house and determine your scope of work) to the house.What program are you with? 

What type of loan term you have and what would be the expected cashflow based on the loan terms?

@Julie Hill What option(s) you decide to take will be dependent on: Balance sheet  - how many $ are you willing to invest, how quickly and for how long;Time commitment;Risk/return expectations - newbie investor only look @ returns, whereas they should be focusing on understanding riskLiquidity and risk tolerance - closely linked with the earlier point on risk/return expectations.I would focus on picking a niche and taking a deep-dive.

If you accept a 10 day inspection period do so expecting it to take all 10 days.

These type of items become part of the premises and are expected to have a serviceable life of several years ... as such they are capitalized.There is generally plenty of grey in the middle and that is where having an experienced accountant is beneficial.

I specialize in multi and single tenant retail properties but have experience in most all categories of commercial investment sales.Recently I have completed all the CCIM courses and expect to be pinned this fall. 

@Chris T.

Can I expect interest rates on land financing to be similar to interests rates for house purchases?

Either way I'd still go at it as if you expect them to pay for this.

It's been on the market for 2 days and the seller's agent expects multiple offers very soon.