This home was a complete gut out to the studs, replace all the windows, new exterior siding, major electrical upgrades, plumbing upgrades, all new bathrooms, added a bedroom in the basement.

That being said, the last year has been pretty strange with high buyer activity, with some open houses with a line down the road.You'll probably want to determine your strategy in terms of the scale of turn-key to full gut rehabs.

Make a small addition to the main house (-> results in 1250 sf 3/2), do a full gut remodel and new roof framing/roof, and convert the existing 16x25 garage to a tiny 1-bedroom.

In a lot of improving areas in Philly, buildings in need of gut-renovations are asking well over $100k for single family and $200-300k+ for multi-family, before renovation (mostly looking on Zillow, could be that's my issue).

My gut reaction is there needs to be some communication on all sides and estoppel completed with the tenant.

This was a full gut renovation to include new kitchen and bathrooms with custom tile and granite, new LVP throughout, paint inside and out and new windows.

Exterior paint, refinished floors, some millwork, contemporary lighting and plumbing fixtures, paint, gut kitchens and bathrooms, landscape/hardscape work, finished basement.

2 things I noticed in your numbers, 1) the rental income is exactly 1% of the purchase price, which is not a bad gut check to see where things fall but very rarely does something in today's market meet that requirement. 

I say go with your gut and make sure it cash flows!! 

The heloc took a long time (months) just to find a banker to talk to so we started the remodel gutting almost everything inside (including the kitchen) but a bathroom and a master bed.