But if you want to rehab to increase rent then give him 30 day notice to vacate and proceed.

So, yes, I am increasingly leaning toward HML given the ability to finance the whole deal including the repairs. 

Its funny because the contract clearly states "TIME IS OF THE ESSENCE" twice, indicating they want to get this done ASAP. 

I am looking for a few creative strategies for using the rental to purchase several other  properties , so I am considering selling it and paying off the mortgage and starting again,  or refinancing it and using the equity for buying other properties,  but this would increase the amount owed on two mortgages.  

I think it's fair to say that conventional loans are always cheaper in the long run but on the flip side if you can save 5-10% down payment you could buy more properties and increase your cash flow quicker. 

It'd make more sense to just take the straight line depreciation in this case.With the value increase selling is probably the best way to go if they need the money.

For me, it is a single family ranch style home with 2/3 beds and 1.5/2 baths that smells funny and needs the carpet ripped out.

The funny thing is that I was googling the flight tickets the other day, visit DFW is much cheaper! 

Will you increase the value of the property that cost 325k cash?

@jerryll NoordenSeriously though that's funny.