Read Multifamily Millions by David Lindahl and follow his methodology of repositioning a value play.  

@Patrick Fraire they are actually pretty close, I wish they would include their methodology though because some people count management and others don't and that can be a big difference.

I think your advice to continue to invest in a careful manner is the most prudent methodology going forward. 

Next you need to consider the other methodologies for coming up with the difference.

I am also well versed in Agile methodologies which I feel is underutilized in the real estate industry and will give me an asset to bring to the table with future partners.

HUD determines the guidelines for how the income is qualified, so any lender who underwrites FHA loans must adhere to that methodology.

Also, I fully agree in that you need a "guide" especially in the beginning if you've never done this before.If you want to know more about this and need help, just PM me and if you look at my profile, you'll get a better idea as to my philosophy/ methodology.

Anyone out there followed his methodology and been successful?

Does this methodology sound right?

They all have it's variations and methodology.