This person insists on getting a HELOC and their reason for it is because we will only pay for the money when we need it, but the rate increases with the prime rate.

We are due for a slight correction, but those generally quite nuanced and they happen on a neighborhood-by-neighborhood basis (example: the prices drop 2%-5% for a quarter or two in a specific neighborhood).Q2 set a benchmark. 1/3 of all SFH sales were sold for $2m+, and the median sale price for a SFH was $1.62m, which was a 13% YTY increase. 

rational people do not think every inherited tenant is bad. but rational people know that inherited tenants remove a degree of control and thereby increase risk. you are safer in assuming they are bad tenants, than in assuming they are good tenants.

You are also eligible for a second FHA loan if your family size increases.

I would probably pass if others are going for 30k ,       maybe be patient for the next one with comps above yours to have room for a price increase  

To increase profitability, you do have options- just reduce the water usage by 30% or so.

Dee Jay Chicago has quite a few issues and property tax increases seem to be one of their favorite ways to solve them.In a city like that I would also be afraid of regulatory hindrances like rent control and the city just not being landlord friendly in general.

(Not everyone qualifies for the 401k)There's much misconception regarding the role of custodians and administrators, as well as the extent to which they should be relied on for advisory services.There are many excellent companies, but as the number of custodians/administrators has swelled it has become increasingly difficult to navigate the space.

So after a few months I'm looking to increase the rents and locking into a 12 lease or find new tenants and refresh the property.

After the renovation, we expect rents to increase approximately $300.