Hi @Adam Pierce welcome and congrats on upgrading to pro status.

I’m upgrading several of my single-family homes now to multi family properties, so if anyone out there needs any tips or help with a 1031 exchange let me know because I’m right in the heat of it and it’s a great tool to have in your belt.

The TPO roof was replaced in 2019 and gas and electric heat pumps were upgraded in 2016.Cap rate appears to be 10.6%. 

They just want some basic upgrades.

and refunds to guests2) Hire amazing people - cleaners, handyman, recruit some neighbors to help fill in the gaps, & self-manage or hire an offshore VA to manage the property if you'd rather make yourself rich instead of making a local property manager rich (more on that here: https://www.biggerpockets.com/... )And make sure that your cleaners and handyman are not only doing a top-notch job of keeping the house in pristine condition, but they are also reporting to you (or to your PM or to your offshore asst) every little thing that needs to be upgraded or replaced so that you can stay on top of it and take care of things before you hear it from your guests in the form of guest complaints and bad reviews.

I'm asking this because if the repairs and upgrades took longer than a year the private lender would feel like they are not getting their money's worth for the investment, but if they held the title/deed at least they would have ownership of the property till the debt is re-payed.Is this something that can work?

Do nothing until she moves out then upgrade to some type of laminate as it's more durable.

If the property qualifies for conventional financing, what about securing a loan now... doing the external rehab now, doing the interior upgrades over time as tenants turn, then refinancing out later?

I have gotten the comps for the area , and have factored in the upgrade in which the owner has done to the property , I feel he is asking for about 5k-10K over.

Full cosmetic renovation & upgraded electrical and plumbing systems.