If the ROI seems low or if the renovation costs are prohibitive, selling might be a more practical option.Cash Flow Analysis: Currently, your property isn't cash-flowing positively when considering your mortgage, management fees, taxes, and other expenses versus your rental income.

Pretty much everything I've looked at either:A) doesn't cash flow for about 15 yearsB) would cash flow if you bought it with cash, but at that point you could get much better returns investing that money elsewhereEven looking at house hacking it seems that the savings on rent (about 2.5k/month median) are outweighed by the significantly higher cost of purchasing property.

The PM doesn't seem to be doing a good job of screening tenants and with multi unit buildings if one tenant gets away with not paying the rent, you can bet they talk to the others who then do the same.

ThanksHi Cody - Seems like DSCR would be a good route to explore.

@Jared Van Horn - As everyone indicated, it seems like these properties are negatively cash flowing and it has a hard money loan on there hence I would sell them and repurpose the equity into a cash flowing asset. 

The negligence thing has always been interesting to me because it seems so subjective...Gross negligence seems a more straight forward - rare to no inspections, known issues, complete ignorance of potential issues/lack of due diligence (ie: fence around pool w/ locked gate) etc.

With this loans it seems you cannot build a multi-family home.

From all that you've explained, it seems this might not be the best plan or simply too complicated.. but I'm unsure where to turn or what to do next because I was really excited about the idea. 

A property just came on the market that seems like a very good deal, and exactly what I look for.

Therefore, it seems this would be specific to the assets you have in your property.So a one size fits all percentage would be impossible to come up with.If people could put a percentage for the bonus depreciation there would be no need to complete the cost seg study.