Is that what we have here, people dolling up the units- value add- and collecting the extra rents, or are the renters paying higher rents for a more low class living experience?

Collect and remit the same way.

There's < 2 months of seasoning for the purchase, cash into the deal is ~$975k w/o rehab (minimal planned so far - turnkey), purchased the property for 35-40% below assessed value, 825+ FICO, and would optimally like to pull out $975K-$1.15M of equity.Main scenarios we've thought of to accomplish this are: 1) structure sale of property from SMLLC to self and secure 30-year new purchase financing on deal (unsure if legal and tax implications if above initial cost basis)2) delayed financing (LTV restrictions a concern)3) cash out refi (seasoning concerns)4) DSCR (seasoning and rate competitiveness concerns)5) one of the above plus a HELOC, personal loan, etc.?

Another unfortunate situation with a lot of these sorts of tenants is that they are "judgment proof", meaning, even if you were to sue them for damages, they do not make sufficient income or have sufficient assets to collect on your judgment.

The tenant is responsible, however, good luck collecting anything over and above the deposit. 

Once rents are optimized, the combined monthly rent will be around $4,000.

Your dedication to optimizing your assets is commendable, and it's essential to explore options that align with your goals.Each of the options you've outlined presents opportunities to leverage your resources effectively.

You cannot double dip by adding a new renter and still collecting rent from the old tenant on their lease and you must make a good faith effort to mitigate your damages (find a new renter).

Without these tools, you'd have to do a lot of manual data collection and copy/pasting of comps/data into a spreadsheet for every property you analyze, was kinda the reason for building this out.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.