I am currently a Client Relations Manager in the international travel division for a large health insurance company.

total annualized return is an automatic calculation. it does the division for you, so if you're doing it ahead of time it's redundant and that is whats affecting the numbers.if you didn't already look at this article, it breaks the feature down in good detail: https://www.biggerpockets.com/renewsblog/2016/05/26/annualized-total-return/

Or just the division of sewer/water/electric?

So my logic has led me to think sub-division and sell. 

So if you ask for a "line of credit on an investment property" that should get you to the COMMERCIAL division.

The situation is tough as it seems the parent parcel does not seem to be accountable for the sub-division of the parcel without easement. 

I'm fire rating the division between units plus adding interconnected smoke detectors and fire alarm!

These two may not be 'very good friends' for long is my fear; the partnership sounds too unequal to me.The person who is building the SF can get a LOC or construction loan on what he is building that way he becomes an equal partner.If they pursue this they will need a lawyer for an agreement anyway so have the lawyer come up with the property ownership division if they are still unequal.

Houses renting in my sub division are currently going for $1,400 month, and do not have hardwood floors and stainless steel appliances like mine.Does this sound like a good way to start my investment portfolio, it will not be the 2% rule but more 1.7%.Once I do the above steps what would your next step be to adding another house or multi-family unit?

Could be on audio, check check Amazons Audio division "Audible"But certainly start with BP Pod Casts they are free!