That's one thing I wanted to do right off the bat is start having tenants pay some utilities but gradually so they have time to either adjust or move out.

In general, these loans carry a higher rate, might be adjustable, might be only a 15 year term....and sometimes all three of those!

Don't be surprised if you have an adjustable rate mortgage, if there is a pre-payment penalty, if the rate is higher, if it's only a 20 year term....and some have ALL of these restrictions on the loans. 

And I satisfied $600k this year alone of 6%+ debt or commercial debt that was adjustable, callable and bothering me.  5.25% I would leave alone until I had at least 5 properties.

The cap rate wouldn't adjust the value would.

Stress that you won't be making any other adjustments to the unit, so if it's not good, then she is likely better off at another home.   

According to the adjusters and others, this is probably a 1 year rehab to turnkey.

Industrial in Minneapolis and Chicago seems like 8% or so, by the time I adjust for location and uniqueness I\m in the 10 to 11% range. 

A lot depends on whether this is ingrained behavior or just an adjustment to apartment living.

We can always cash-out refinance in the future, but will probably only do that for our primary residence (which is on schedule to be paid off in ~10 years).Without looking at your numbers, it sounds like you still need even more cash flow, either (a) through refinancing - such as your current plan to refinance  combined with buying more properties, or (b) you need to adjust your current living standard.