Our HOA recently replaced an existing playground with new equipment.

Approximately, how much will it cost to build 2 more units on top of the existing duplexes? 

So I had another contractor do a walk through of the house to give me a new quote and he informed me during the walk through that there were chances asbestos existed under the floor tiles and that the previous contractor may disturbed it when he had them removed.

This will require cutting up the asphalt, doing the work and repairing the road.

@Ali Boone Just so I understand this model correctly:Your operator finds people to sell him properties subject to their existing mortgages and then finds an investor to finance the renovation (before transferring the property) and then after the renovation the operator places a tenant and then sells the property to investor at a predetermined price.

Will be looking to refinance the existing apartment owned free and clear, to buy 2 more.

I believe the memorandum of option is just a notice that an option exists, without recording the complete option agreement. 

I mean hopefully you have some reserves to cover slow or non-existent months.

i would look in the smaller cities in between bigger markets since the bigger markets tend to be saturated right now with investors

As @Hai Loc mentioned 1031 doesn't exist in Canada.