It is very important that you find out precisely what this covers.

An idea that occurred to me is the possibility of putting these 13 rentals into one bigloan and doing a cash out refi to cover a large part of the cost of our build, with the thought that the interest would then be deductible, which might have some tax benefits. 

I am looking for the most economical way to leverage a free and clear duplex I own (worth appr 120k) to cover the down payment (appr 35k).

So if you buy at 70% or ARV minus repairs, the financedd amount will be enough to cover repairs and an additional 5% additional.

Bottom line, be sure when you analyze the properties in Auburn you are not just considering cash flow, but also the resale value (assuming depreciation) after your holding period, and expect high maintenance/ CapEx expenses to include covering the costs of heat for the tenants (as many can't afford $100+ swings in monthly expenses, so you are better off paying for it yourself and keeping the rent coming in). 

From my moron contractor that lied to us he was licensed in plumbing and electrical.. that did all the wiring and plumbing and then covering it all up with sheetrock, trying to scam the city into thinking no one touched electrical, to not ever having a single inspection done, then stealing money from me, and running, and buying the cheapest material.. ever!...

If so, that's an additional $150/month to add to your expenses.Best of luck, do your due diligence, and feel free to reach out if you'd like broker representation, I'm confident one of my investor focused agents can guide you well.

(For this scenario, please assume closing cost will be covered).

The only utility the landlord must cover is water and sewer.

They usually rent them out the entire ski season to the same renters from Manhattan and they tell me that the income covers their year round mortgage and maintenance costs.