@Ramin R kamalBuy an undervalued property.Look at comparables and recent sales to get an idea of how much a home will go for in that area.

We've employed a similar strategy here in Atlanta over the last 20 years (albeit with SFHs), so we should definitely compare notes.

Any profits split on rent or if sold.For tax purposes, how is this handled? 

Sometimes its good to do some planning and sell in years that you may have less overall income compared to other years. 

MF is in huge demand right now compared to what is was pre-burst.

The neighborhood is quiet, not affluent and not a war zone and base on my research, comparable rental properties are between $1,300 and $1,500.

Where to invest or how far away depends on you, you can head upstate were prices are more reasonable or you can head South or to Midwest prices are manageable compare to our local market and laws might be more in Landlord favor..

I'm probably a little higher on the equity side than most, but I figure if I have good equity, my debt service is probably relatively low compared to rental rates and will also help ride out the soft patches. 

If this is correct the answer is that value is based off of either comparable properties that have sold, or the income that the property produces.

In terms of ARV and comps, you should never compare rehabs with new constructions as they are vastly different.