My point was simply that if the "fair market value" is really at the numbers you have stated, then it appears to be a sound investment, even if there is a bit of time... or a few "extra tasks" in getting to that great cash flow spot.

Get a 75% 30-year loan on your current house and turn it into a rentalGet a 75% 30-year loan on the duplex / triplex you are buyingTake all that extra cash you will have after you do the above and buy another property either as a rental or to live inMost investors I know would never get a 15-year loan because they want as much cash as possible going towards either rainy-day funds or for the purchase of more income property. 

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

Take a $100k home you’ve owned for 20 years that’s now worth $300k and start depreciating that extra $200k.

Do I need to be up front about my goals to be a real estate investor or do I just pretend to be a home owner who is interested in getting some extra cash from my other unit/units?

The bank approved us for an extra 100k more than what we originally asked for (at 65% LTV). 

On 1-4 units3.5 5-7 yr lock, 25 amort. 80 ltv on 1-999 unitsAnother would do a 10 yr lock at 3.75-4%, 25 amort, 80ltv on 1-999 units.Most have little to no extra costs/ fees from the bank. 

But if someone has some extra information and advice, I'd be happy to hear from you. 

I don't think that the extra room could be converted to a bedroom.My goals are long term cash flow to replace W2.  

A lot of extra trips and extra expenses are incurred around a vacancy.