The mortgage broker now says we will need to open up a door between the two units and remove the kitchen from the efficiency in order to be able to continue with the loan/closing.

New appliances really give more appeal to prospective tenants and make a huge difference in the look of the kitchen. and as someone said earlier, it will only help the house to appraise higher if doing a refi.

I wouldn't suggest that if rentals nearby have brand new kitchens though.

Lower unit kitchen floor needs to be replaced.Needs updates in both units: kitchens, bath, remove partitions separating formal living and dining rooms. 

I am hoping to offer $85-90k.Here are the numbers I am running:Rent in area for a 2 bedroom is about $1200/month (based on Rentometer)Mortgage (PI) is $390/month (based on $90k with 20% down @5% interest)Taxes is $150/monthInsurance is $60/monthHOA I am estimating to be $50/month Vacancy (7%) = $84/monthCapEx (10%) = $120/monthMaintenance (8%) = $96/monthManagement (10%) is $120/month (I plan to do this but added it anyway)Total Cash Flow = $130/monthI have not seen the property but based on the few pictures I have seen, I think I will need to paint ($2500), redo flooring ($3000), redo kitchen ($7500), and maybe redo a bathroom ($5000).

I am doing LVP in the kitchens and hallways (natural wood look in darker tone), white kitchen cabinets with stainless appliances, and have painted Agreeable Gray SW throughout.

Updated kitchen, bathrooms, new flooring, new paint, new appliances, new living space in basement, updated lighting fixtures, new landscaping, plus more.

(planning to as i haven't moved in quite yet) remove popcorn ceilings, repaint all interior walls and exterior facade, new LVT flooring, new cabinet doors on all kitchen cabinets as well as repainting cabinets.

remodeled kitchen, changed flooring, and Bathroom vanityWhat was the outcome?

But yeah I would be living in the bottom portion of the house and renting out the top two floors and then share the kitchen.