Purchase price (inc closing): 130,000 75% loan = 97,500Renovation: 25k - update kitchen and add a dormer turning top floor into a proper bedroom (currently being used as one as it is)ARV: 190kPotential rent: 1650 - 1900 (friend has property on the same street that rents on the higher end of this range)Montly cost = 600 (capex, repair, tax, management/tenant placement, insurance, buffer)initial invest 25% down + closing + construction = 32500 + 4000 + 25000 = 61500 + carrying costs until its rented (2 months)Refinance @ 70% based on 190 = 133,000 Money pulled out = 133,000 - 97,500 = 35,500; So would I essentially be leaving around < 30K (based on 61,500 + carrying costs) in the deal and the future returns are based on that number essentially?

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?