In my post I was just trying to offer another perspective.

What I understand, (and please everyone jump in to agree or provide constructive feedback), the multiple ways to make money and lower the cost of investments in real estate can be found in different parts of each process. 

Assume that you're sitting on:$200,000 in suspended passive losses$150,000 in business losses$100,000 in expiring NOLsThe Magic Transformation:That $500,000 of "painful" ordinary income becomes your strategic advantage:Absorbs all $450,000 of those otherwise-stranded lossesLeaves you with just $50,000 net ordinary incomeMeanwhile, your §1250 gain still gets preferential rates:$581,820 at 25% max (unrecaptured §1250)$700,000 at 20% max (capital gain)The Plot Twist:What looked like a tax nightmare actually solved multiple problems.

Additionally I have multiple prospects very close to my existing home that have not been remodeled since construction in the late 1970's.  

Take the effort to solicit contractor recommendations from multiple people.

FWIW I'm a current Pit owner and have had multiple dogs on the breed ban lists over my lifetime.

State up front you're a Coach in your post, then the obvious answer is yes from your perspective. 

Because instead of collecting one rent check per month, you’re collecting multiple payments from different tenants.

Though it may cash flow well based on their current debt service, when you compare the income it produces to the equity they have is it actually even a good investment for them from an ROI perspective or would they be better off liquidating and redeploying?

You don have to replicate in multiple states.