I know these lines of credit are typically variable rate and interest only but when I am buying deals with 20-25% equity that are new construction and cashflow around $500/mo with this loan option, I feel like I have hedged against those risks fairly well.

It happens, a fair bit.

It is very much case-by-case and requires understanding of the current tax regime for personal itemized deductions, as well as gambling on the proposed changes to this regime by the next administration.

Personally, if your market tends toward the former condition (better/normal appreciation) I think it's a fairly safe deal looking at the long term, assuming infrastructure around you continues to support the idea of renting it.

If the water bill is $100 a month, increase the price by 20% (or whatever you decide is fair) to compensate you for the time required to split and bill and to cover additional use when tenants squander the utility.

This is just some random Airbnb customer service person, so I wouldn't take this to court, but it seems fairly clear that what is being suggested is possible. 1.

Quote from @Richard Kim: I'm a fairly new small time out of state investor who owns a couple multi-family properties in Cleveland.

At worst, fair chance of some quality mentors. 

Work out a fair revenue-sharing model, such as a flat lease or percentage of profits, and consider hiring a property manager for oversight.This post does not create a CPA-Client relationship.

@Jeff G. not aware of that, but sure it's available for a price from Fair Isaac Co or one of the credit repositories.