@Aaron Klatt Hi Aaron, thanks for the reply...to clarify...adding the 2 BR's would make my 1BR unit a 3 BR unit...I figured this was a much easier route rather than starting from scratch and adding another unit that included a kitchen, bathroom, etc.

How do you figure the 10%?

Here are some rough ideas I have:-What is house hacking-Renting vs investing-Two, three, or four units-Financing options-Rehabbing-Advantages of owning (tax breaks, appreciation)-Short sales/REOs?

@Craig Lessler, You'll pay tax on the rough difference between the net sales price of $159Kish and the net purchase price of $127Kish ($32K). 

@Matthew DrouinThat is a great position to be in.Now with regards to the refinancing options and how much you should take out, I'd say it depends on what your plans are.If you are planning on holding onto to that rental for the foreseeable future, you should stress test that property to figure out how much minimum income it needs to generate each month to meet your mortgage payments.That monthly would dictate how much you can conservatively take out after refinancing (and providing that you lender is OK with that too) without exposing yourself.Now if you have other deals that you want to pursue and you need as much cash as you can lay your hands on, you should take out as much as your lender would allow you to.Personally, I'd go for the option 1, especially if you have the  ambition is build a sound rental portfolio.

When I asked him why, he said he figured once I saw him on the news I would have cancelled him.

I cannot for THE LIFE of me figure out where on earth I want to begin doing MFH investing with Buy & Hold. 

I have tons of information about analyzing a deal, I think I have financing figured out. what I can't find much info about is the transaction itself.

After walking around with my repair estimator to give me a rough estimate of costs, I came up with $55K for the rehab.

After walking around with my repair estimator to give me a rough estimate of costs, I came up with $55K for the rehab.