They do it while protected by the private placement memorandum and by following the SEC regulations for such structuresThey grow without the brain damage most so called successful investors have to go through With that said, notice that most responses you got on this site are from people who think they are so successful because they worked hard to make it and now they have their little system to buy, rehab and flip or rent their properties. 

Working on my gaps is precisely the point of this thread.

They can not do something precise without it being an appraisal.3.

You clearly do not know your rights, are not very clear about what you have and the precise nature of the documents.If you really want to be proactive, bundle up everything you do have (including emails, etc) and get a lawyer to review.

General rules of thumb can stand as precisely that: general guides.I think what can be gleaned is that . . .A) All real estate is local.

We now have roughly 57 properties under mgmt---I think I have found a formula that works here in Memphis for tenant placement.

Then my 2nd issue is how the units are 'separated' or to be more precise NOT separated!

Places like Federal Hill, Fells Point, Bolton Hill, areas near THE major employer, Johns Hopkins Medical System.If you can get more precise on the neighborhood, I'm happy to weigh in.

If the property is permitted to have 3 units, then you have to consider finished ceiling heights, window sizes (unsafe to have "basement" sized windows for an apartment), flooding potential, placement of the mechanicals, size and nature of the entry, whether or not there are 2 ways to exit and a number of other practical considerations and considerations dictated by the laws and codes of the area. 

and damaging your property, precisely because they are class D renters.