The "plaintiff" claims they are following the rules but everyone else isn't, reduced income, ordinance violations, etc, etc. 

That is what I used and I added an addendum for additional rules and clarifications

You'll find that if you follow the rules - you'll be on top. 

After reno it still comes in just slightly above the 1% rule with around a 6% cash on cash return, which are these numbers okay for a neighborhood that keeps getting hotter?

The property is technically two identical duplexes right next to each other on one tax parcel of land.

In doing so, the “1% rule” often doesn’t seem to work.

@Ray Li Finding a SFR that meets the 1% rule is going to be very difficult in today's hot market here.

Vegas is obviously a different world/ballpark (those who bought at the bottom are up 100%+).However, none of these places are near the 1% rule on any property in these areas (if you were to buy today). 

Side note: is the rule that you have to take the property out of your businesses name and put it into yours for 6 months to do a refinance for real? 

@Steve Podwojski Going from a multi-member LLC to a single-member LLC does not spark an audit in and of itself as long as you treat it for tax purposes within the framework of Revenue Ruling 99-6, which is the IRS' guidance for this very situation.Are you buying out the other members for cash?