There aren't a lot of smaller multi-family properties in the west metro and properties often sell for a premium due to the school districts, etc. 

Where there is some additional questions are whether items like health insurance for myself and my wife (the premiums not the actual medical expenses) would be considered part of this overhead (in the past we HAVE NOT put this into the "cost allocated" calculations for Sch E but instead listed them in Sch A.

I pay all the insurance premiums, property taxes, materials, repairs, anything at all used for the business. 

That would be more exact that me estimating how much I think the premium would be reduced.

You need to be prepared to pay premium interest and price point, especially if you want no money down  First impressions, I would never do no money down owner-financing, even at premium interest and price point, as a seller because it doesn't allow the seller any buffer if they need to foreclose.  

Being situated between Woodland Hills and Encino, I would assume Tarzana's prices should eventually blend with its two more expensive neighbors..tarzana is a premium market to woodland hills in every way.... not sure what you are looking at but historically and currently tarzana is premium encino premium to tarzana, tarzana premium to woodland hills....especially south of blvd 

Vacant, easy to start projects sell for a premium due to this reason. 

Then try to sell at a premium.3) Hold onto it long term and put a corporate renter in one side, and a long term tenant in the other to maximize cash flow.I suppose there are two questions there.What's the best way to use a HELOC in this situation?

PCSB, Westchester, even Webster.I'd also love to give you a quote on title insurance and save you 10-25% on premium. 

My current policy with Pillar Insurance is EXTREMELY high ($4k-ish), including a $2K Hurricane Premium on top of the $2K Non-hurricane premium.