They were lacking in accounting which is why we switched, but I heard since they have gotten better accounting features. 

Then you need to account for soft expenses like Vacancy/turnover, maintenance, and capital expenses.

Like I said, I'm not an accountant so you should probably talk to one.

Just spoke with a business dev rep from BAM today, good conversation, said theyre not worried about rates right now and have plans in place to account for them. 

I did find a CU that offers that product but they don't take into account the rental income from the other units.

This could be a great way to get started as you'll be at the property everyday and by living in the property not only will you be there firsthand to oversee the work being done, but you may also find new potential issues while living there.If you're looking to do this, I'd recommend a 203k loan to purchase the property and get some rehab funds. you'll just need to live in the property for a year before being able to lease it out to a tenant.

They have degrees and interests in different segments of what I think are important facets of the real estate game, one will be graduating with a degree in construction management and the other in accounting.

Make sure you account for all of your interest load if youre using a Heloc for permanent financing as you suggest.

I don't like the returns but we use regular savings accounts. 

Of course, what they paid isn’t going to take into account the money they have spent on renovations or remodeling, which can be substantial.