However, with the improvements and increased income from the sign and increased rents I will be able to show a strong NOI and I'm hoping to refinance with a bank within another year or two at a lower interest rate and increased valuation.

They are meant to weather the market until conditions improve.

Our Plan A was to sell both, but with the softening of the market, we are preparing for our Plan B, which is to keep both units as rentals (minimum 5 years or until the market improves).

One method that has worked for me is family and friends willing to invest with me on a project by using their capital for down payment and improvements while I hold the financing.  

They put a lot of money into the property and improve the asset, most homeowners won't to the level up repair a investor will 

(If you take the smallest unit, and rent out the biggies your cashflow situation will improve.) 

When I see all the investment and intentionality in improving the city, it only increases my confidence in investing there. 

Therefore, investors have to get somewhat creative to find these properties to improve their chances.

I bought it for $235,000 two years ago and have made some value-add improvements (like raising rents, adding washer/dryer,etc). 

Purchase price: $800,000 Cash invested: $200,000 Sale price: $4,875,000 Bought from FDIC, did many improvements, increased rent refied 2X What made you interested in investing in this type of deal?