Slowly build out a repeatable process...if you continue to change things (as in different types of properties, different levels of renovation, different finish material, different neighborhoods, etc.) you create more variables and make it harder to solve to the problem.I am a math guy and less unknowns/variables you have the easier the problem will be to solve. 

Again, I don't know if the Philadelphia assets I've observed with questionable values are REIT owned, and if so, make up a significant percentage of the REIT portoflio, but if they are that is a serious red flag.

I see how that would keep your utilization percentage down (and thus help your credit score a small amount), but I don't see how it saves you actual money. 

The catch with the estimate is you may be wildly off since it's a new home and you don't really know what those bills will be until you've lived there a year (seasonal variability). 

Even though there are multiple variables to assess here, what's the age of the property? 

Since HELOCs have a variable rate, you’re banking on rates staying the same or decreasing.

48,000/300,000 = 16% ROI60,000/380,000 - 15.7% ROIAppreciation:Renovated single family = 33% appreciation potentialConvert to Quad = 31.58%So in both calculations your percentage return from gross revenue AND appreciation is higher renovating the single family.

Can someone explain the variables that are used to calc the Income-Expense Ratio.

Also make sure that you're using "per unit" numbers for your rules of thumb because this is much more accurate than simply looking at the expenses as a percentage of the property's income.

One issue I've uncovered in this is that they also add a $75 "admin fee" in addition to the percentage based "supervisory fee."