One thing I did note is my insurance is $3K a year lower due to the monitored fire suppression system in these larger properties versus my smaller properties that sleep 12 or less built close to the same time.As someone who has lived in Illinois twice, the politicians there don't care if people burn as long as they can tax and spend. 

This sounds like a great strategy to me since this would substantially lower my down payment in a deal.

Usually only commercial properties with established operational expenses histories are evaluated by cap rates and then those cap rates can also be applied to buildings in certain areas representing higher or lower risk areas.

You may need to lower the rent you are asking for by a bit, but it is way better to have a tenant using less water because they're the ones paying for it, than having them run the water for hours since they aren't the ones paying for it.

I'm sure you and I both understand that as flippers, having control over the construction cannot be stressed enough.

Problem was it's a common perk for Chinese restaurants to provide lower paid staff with room and board, and without the upstairs apartment, renting an apartment in nearby towns for staff is a problem with rooming house regulations beside a major expense.

How do you handle situations where ARV comes in lower than expected?

I see it like a seesaw - less work, less returns but also less stress.

But depending on the magnitude that home price range would have to go lower. 

To be conservative, I assumed rents will be on the lower end of the spectrum.