That might could even go half out there bottom and half cut in at the top. 

In strong rental markets, do not worry too much as there are lenders who will finance your loan even if your DSCR is under 1 (but for best terms - aim for 1+) Typical LTV will be around a 70 - 75%.

Looking forward to take action even if it is very small

I am not opposed to re-doing the site plan but our towns planning board only meets monthly so I am 45 days out to even go in front of them for a change and that kills this project for the year as Phase I is seasonal.I am not on a shoreline exactly. 

Are all residential buildings (1-4) units taxed at the residential rate even if they are used as an investment?

Taxes and insurance do go up over time, but the bulk of your monthly payment will stay the same even with high inflation.

Even good VA's can't get the same results as a good local caller.  

Daria,Even with fixed income you still qualify to take cash out through a mortgage (cash out refinance). 

I have heard that paying off your rental is not necessarily the best choice because of the deductions it allows for, but given the type of loan this house is mortgaged with, is it even possible to buy another home together and start renting this one out when I have a FHA loan on this one?

With that being said even if we were able to find an attractive refinance opportunity, would it even be worth it when factoring in all the fees associated with converting it?