Because I will be doing the rehab and garage is a clean slate, here are a few options I am considering:Convert it to a master suite, which will make the house a 4/2 with 1500sfConvert it to a studioConvert it to a 1/1 My goal at the moment is to maximize ARV for refi, but I am not sure how the appraiser will look at it.

For me, it added an extra level of security/ protection above the regular homeowners policy (injury, property damage etc). 

That being said, and despite it not counting against my DTI, an additional payment each month (to repay the 401k loan) pulls more available money from our regular income.

Clean the place up, bump it up to market rate, and be more deliberate when screening in the future.

Make sure you are accounting for all expenses, taxes, maintenance, HOA, cleaning, furnishing, etc, etc, etc.If it cash flows...it cash flows.  100% OPM is nuts.  

There's no eating at it, 'cause it's always covered, 'cause I'm always working, and even if I cleaned it off there'd be no room for more than one chair based on how it needs to be situated.  

They refused to clean the carpets and went on and started replacing all carpets in approximately 700sq ft living space.

That would include all kitchen supplies and linens, cleaning supplies.

I have not received rent and I also want to get into the other two units to clean them up and do some repairs prior to renting again.

Outside of my real estate, I still have an IRA and a regular stock brokerage so I have some exposure to the stock market.