For everyone interested in understanding the Memphis, TN market conditions I suggest subscribing to the Chandler Reports Below is their report for August:"August Real Estate Update Home Sales Memphis and Shelby County home sales continued to improve through the summer.

I will be upgrading the both units, and was wondering what you guys and gals would suggest as far as the quality of upgrades for rental vs owner's place.

I suggest giving the office closest to you a call and ask the loan officer if they do VA multifamilies, using projected rental income.  

Just for reference - we rent fully updated SFs and charge above market rents, so I am not suggesting slumlord conditions.

If you haven't run the numbers yet, I suggest you run a few properties through a calculator.  

I would suggest that you try to present 2 or 3 options to the seller.  

Matt is a stand up guy.

@Patrick Hill I think the marketing package or whatever you're looking at is suggesting the NOI is about $11k/month and then using their finance assumptions for a new loan that would be a payment of around $8k/month leaving you cashflow of $3k/month.

Any suggestions will be appreciated.

I also suggest reading many books.