Where your CF/ appreciation is balanced and tenant quality is minimal headache.

Just make sure it is convient for you and have minimal distractions.  

If I take out a HELOC, I can pay it down whenever I want thus minimizing the actual amount I pay in interest (regardless of rate vs cash out). 

Another item to consider is an office location that is convenient and has minimal distractions.You can locate your office in your place if you can close it off and has minimal distractions.  

I have several questions ranging from minimizing gift tax up front, to the potential of getting US based equity lines against the property priced as a commercial asset (We're going to be renovating the building into a 7 unit complex).

The more you buy/sell, the higher % you keep, depending on your contract with your broker.You're probably best off at a small local firm where you can pay minimal fees, get access to MLS and basic supervision, and aren't required to pay $600/year to local/state/national association of realtors (NAR).

Schedule on site with 3-5 property managers who would be interested in providing full servicing on your buildings and listen to their pitches.

He says the house "Needs minimal work, brand new roof, needs new AC, electrical needs in the basement."

it will have to be turnkey...how do we minimizer risk in determining property mgt, area, etc?

Anyway, I can go out and get a 10-12% annual ROI with minimal effort in any number of places--buy and hold rentals, larger multifamily deals, JVs, funds, etc.