@Will Gaston I would suggest you at least get it inspected and see what the worst case number would be and then reassess.I would reevaluate numbers - if you bring in $8900 per month, and have to allocate the recommended 50% in expenses, and $3300 in PITI, you are bringing in $1150 with so many properties to deal with. 

I mean do I consider it as a regular loan/mortgage and set a certain amortization period to be able to calculate monthly HELOC interest  payment, and allocate as % to the "principal payment"?  

Also for everyone else on this thread, I totally get that cash on cash return as a % would be maximized by allocating this money across multiple REIs.

You will need to expect and allocate time to additional paperwork but establishing a strong working relationship with the housing adviser in your area will really help.

I think the formula comes from what takes up most of your time by managing these tenants, in the last few months, what took up more time than what you are willing to allocate?

An LLC makes some expenses easier to allocate to a business, it has it's own accounting, so buying office supplies is generally accepted by the IRS as opposed to you buying paper for your printer at home.

Holdfolio is allocating all earnings on this portfolio until it is performing at 100% occupancy. 

After allocations for  property taxes and insurance, the underwriter calculates a Debt Service Coverage Ratio for the property, which is a key factor in the product’s pricing.

@ Cole A.From your description, it would make sense to allocate the rental portion to the owner portions on a time basis rather than a physical unit basis as is normally the case.

For example, evictions can be generally be accomplished in under 30 days at a cost under $500.00.We have lots of land to develop and grow, keeping the cost of development reasonable.Our water allocation is solid and deemed to be dependable with multiple sources.Arizona has a very low risk of natural disasters such as earthquakes etc.In the portfolio of properties I manage I currently have zero vacancies, April rents were paid in full by the 9th and May rents were paid in full on the 8th.