So, if I am a buyer, I will calculate that risk into it and will charge MORE for the risk.

If these homes were such great investments, they would keep them for their own portfolio.When you purchase an investment, calculate your returns based on actual performance.

For market pricing, I collect LTR data from BP rent calculator and multiply by 1.5x.

Regarding calculating ARV, we also own a mortgage company and a real estate company, we we do a CMA using the MLS.

If the improvements were recognized as taxable property before, you might be able to keep the property taxes and depreciation setup.

How about realizing that when you use the current property taxes of a property you are buying to calculate your per door profit that the following year your taxes will reset to what YOU paid for the property and will likely significantly increase your tax expense - which can take you from a positive cash flow to a negative cash flow on a low cash flow property… now you are paying your tenants to live in the property every month out of your W2 income  hoping for an appreciation play until rents hopefully increase.I could go on and on.  

The 1% rule is a simple rule which is easy to calculate and describe. 

I’ve even had structural engineers say that a deck or other structure should have fallen down as well, according to their calculations.

It's worth looking at a blended rate calculator before you make a final decision of the type of loan as it will show the new "blended rate" of your HELOC and first mortgage if you go that route.

Calculate expected returns, costs, time commitment, etc.