So far limited value added, plan to add kitchen, backsplash, paint and recarpet.

The land is zoned multifamily residential, so there is limited range for what can be done.

Primary residence gain is not taxable (to certain limits), so when you convert to investment property, you convert at a higher basis. 

Also, with this approach, if the place is a bit beyond your DTI limits, the lender can count 75% of the projected rent (per appraisal) to help you qualify.

I never could understand the tax aspect you still have to pay tax as you receive the payments its does not limit your tax liability. 

Again just looking for some insight on what you think the upper limit would be of what I can qualify for a primary residence duplex.

Has leased for 12 years, with limited issues, until now.

Arlington limits them to within a couple miles from the entertainment district. 

Does the HOA still limit rentals to a 2 week minimum?

Analyze your total budget (how much money you will have to actually purchase a property), talk to your banks or other finance institutions - they will tell you your credit limit before handing you out any money.