That 4% cap rate on in place financials is a lie.  

Toxic paint et al.Would you want your family living in house remodeled with cheap Chinese s**t?

@Ed Lopez our thoughts:1) $65 is average hourly rate for handyman in Metro Detroit.

The advantage with the bank was minimal closing costs, a good interest rate, and a draw system so I could get funding as I completed each rental unit. 

Congratulations, you get to share your partners tax burden and pay the depreciation recapture at ordinary income rates. 

Your existing low interest rate mortgage is an asset that you likely won't get again.To Your Success!

Are they at market rent, or locked into below-market rates?

@Troy Gandee I’ve been to Edisto and remember how cheap it was a few years ago.

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

In a climate like this with high rates, probably better to use a Heloc so you keep the lower rate of your 1st lien.