I do have a financial and real estate background and I can see how his methodology could work (as well a turnkey investing in general).

Honestly I haven't had the time to read through this yet, but CoreLogic usually puts out some thought provoking stuff with good data and methodology behind their research.The following link provides a summary of their Q1 2013 Renter Applicant Risk Index Reporthttp://www.sacbee.com/2013/07/18/5575564/corelogic-releases-first-quarter.html

The catch is the CAP is generally only as good as its inputs and to be certain you are comparing apples to apples {even then, you will likely have Spartans, Dudleys, and Honeycrisps} the CAP rate for each cash-flow needs to be determined using the same methodology. 

But I think you should be pointing this out to the OP since he is suggesting this very thing in his methodology.

Otherwise, if you just setup a bookkeeping methodology (e.g. even something as simple as Excel) you don't need to open more bank accounts which means keeping track of more a/c numbers, ordering more checks potentially, etc. 

With the banks, you'll be at the mercy of the appraisers that they hire to evaluate your property, as well as their internal underwriting principalsMulti-family appraisers are going to use both the income approach (strictly NOI/cap rate), blended with a comparable buildings cost per unit methodology.

It is an art but it requires some science and a good methodology. 

I'm open to any advice on this property or my methodology that I've used, and I appreciate anyone who takes the time to respond.Best~Cameron

Is my assessment accurate and are there significant benefits for this “choppy” methodology?

And there is a methodology to this to make it simpler.  1.