After all expenses, including PITI, we net on average $700/month.

The 4-plex would produce around $1000/mo cash flow after financing, and that financing would recover your total build cost leaving you with no money in the deal at the end and an "infinite return" for CoC.

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.

After waiting out a lengthy eviction and doing nothing more than a clean-out, we listed it with a realtor—and walked away with just shy of $200K in profits!

Most people would walk away after something like that, but he used the experience to build his expertise and now owns 50+ units.

You also don't have to pay state tax on income. 

They put one of their employees into one of my houses, and after I switched to a new property manager, that tenant stopped paying rent (amazing!)  

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.

Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

However , properties taxes are due like roughly 12k for the two lots.