I am no real estate lawyer nor am I a CPA, but I am a former FDIC bank examiner and my Wife/investment partner is a real estate CPA. 

You're examining basis revaluation on day 1, but what happens after day 1?

"Only sell when it's on its last leg or your last nerve." 

Buying a home feels normal, so buying a house hack isn't as nerve-wracking! 

It's worth examining the monthly rent of your units compared to the median rent of other units, and comparing the median and specific rent of your units to the median wage in the area.

You might want to examine the contract when buying a foreclosure.They usually prohibit assignments as in wholesaling.You may have to actually use your own money and take title.

;-)  This is why I value meeting/befriending Travis - We have 2 opposite strategies on the same business but are both open to examining and respecting each others technique (Watching closely of course to steal ideas and get in an I told you so when possible). 

Maybe I need to go review how cash on cash is examined. 

Dolton & Calumet City are decent markets to hold SFRs but...... you must closely examine the taxes & exemption on every deal.

These you 1031 into other properties that will produce better.The other properties you examine to see if a refinance will still give you good cash flow.