They could do both; however, the main key is that the rent must be "Fair rental value" (the going rate of a rental of that type in the area).Yes both can be done if you are renting for profit at market values.

The key benefit is that property management is built in to the costs.

Somehow we got to a point where a group meets in secrecy to make key decisions that have huge impacts on all areas of our economy.

It'll be over-improved & as close to maintenance free as I can make it, and any tenant that wants to live there is going to be looked over very carefully before they get a key.

*Can anyone provide some solid, successfully traditional mathmatical formulas & some key strategic factors when analyzing first time multi-family properties?

If long term wealth is your goal then getting a property with 10% cash return may be fine when you add in equity gain and appreciation, that's a personal call.How much risk can you deal with, how much work do you want to put into it (in terms of rehab and management), and what type of returns do you want to get will be the key things that should guide where and how you invest your money.

The key is what your lease says about appliances.

If we foresee a question that buyers might have, we may stage lightly to influence their view of a certain room/area.

The good news is that over the next 3-4 years, you will get to know the property in and out and know it's quirks and also be able to scout out a good property manager in the area (since other folks in your chain of command and sphere's of influence will also be in the same situation as you. -- Own and then move and will need to rent their places out.)

These are the key factors you need to be sucessful in the model you propose.In addition, simultaneous closings (where you use your end buyer's funds to close your purchase transaction - using buyer C to close the A-B transaction) are very difficult at best these days due to the many law changes and the title companies not insuring the transactions or willing to perform such transaction.