Replace it with rubber (lifetime opposed to 10 - 20 years with wax) and you'll be good to go.

The home also had a rough exterior including damaged and rotted siding.

e - Roof   f - Siding/brick   g - Foundation (this one can and will be the killer)   h - Windows and doors   I - Finish door/window hardware...inside and out   j - Exterior water drainage (there was none back then) and any damage done already (see "g" above)You said you estimating $3000 for rehab now. 

(tile, paint, flooring, light/fan fixtures, new toilets, new exterior paint/siding, granite countertops, stainless steel appliances, backsplash, new cedar columns and shutters) What made you interested in investing in this type of deal?

Since owning the property, I've added a laundry room to the 2nd back unit, created a driveway for parking, added a privacy fence with a small backyard, and painted both homes exteriors.

If the rent works out in the low 700's as opposed to $800, then its okay.

What I am looking for is single family homes mostly but wouldn't be opposed to condos or MF's (no more than 2 units, want to start small). 

An exterior and interior overhaul including a kitchen and bathroom remodel and a reconfigured Master Bedroom.

@Steven RagsdaleI ended up working with a couple and had a so-so experience with one and a better experience with the other however it was all for exterior work and not to the building itself.

Home is currently titled to an LLC but I'm not opposed to transferring into my name.Thanks for any help