All the insurance brokerages I have spoken with require all the electrical, hvac, plumbing, and roof to be replaced before I can get coverage.

Hi Kyle,It would be wise to look at the amperage coming into the structure and have an electrician help you decide if it's adequate for two units, or if you need another drop from the power company. 

Anyway I have about $135k available on my heloc. sale price on the duplex is $279,000, so 20% is about $56k. the house is perfectly livable as-is, but at $60/sqft and properties on the block selling for $140/sqft i think there is room for some forced appreciation. the building is currently a three-floor duplex townhouse, one unit is the ground floor and unit two is the top two floors. all floors are basically the same floor plan. the second floor has a kitchen/laundry stacked above the first floor kitchen/laundry. on the third floor, the room is in the same place and empty, but utilities (water gas electric) are already run and in place for adding a third kitchen/laundry, so conversion to triplex would be simple as installing cabinets and appliances and building an exterior staircase up to the second floor rear deck. the three 2bed/1bath units would rent for $1000-$1200 a month each, conservatively. we would have to find somewhere else to live for that to happen, but that is our 1-3 year goal anyway. would it be better to make the bank loan smaller with a bigger down payment from the HELOC?

There were also a few outlets that didn't have power.

Otherwise, you would be adding more debt and hence less power to purchase a property, right? 

With 4 units there is probably some common electric you will be charged for.

There are other location selection criteria, but price and rent growth is number one.Rent and Price Growth Rate - Inflation is constantly eroding buying power; each year, it costs more to buy the same set of goods and services.

That's their job...don't help them.The power of leverage allows your cash to be equal to 5 times its face value. 

We have done the occasional swag (Nike golf shirts, Underarmor Pullovers, pens, etc) but these are more promotional items from our marketing budget.We have done gift baskets for larger investors and don't underestimate the power of personalized handwritten notes/cards.The best "holiday gift" is the returns our investors receive (we are in the midst of 2 sales), but this year I am also thinking of a box of gourmet handmade pretzels dipped in chocolate, caramel and nuts that a small producer in the Philadelphia area makes (keeps with the Penn theme).

I am almost positive she is going to stiff me for the rent and electric bill.