On a listed property you can't count it out.

I'm not counting on getting all of those properties off of the MLS. 

Make sure to count for closing costs and realtors fees on the back end, and the unexpected rehab costs.

If you've got a duplex at $1000/unit and somebody moves out you're only bringing in $1000/mo until you get it filled.  4-plex is also the highest unit count you can go and stay within the Fannie/Freddie lending guidelines.As others have mentioned, the multifamily market is pretty hot right now.  

This is currently my only good cash source(CC's don't count as "good") until new income is established I wouldn't want to max out the loan on rehabs unless it was exceptionally justified but could spend 5k-10k and feel solvent.I had to quit my job and leave the area last fall without having the time to make an informed decision on the house. 

That is where equity comes to play.To add insult to injury, not only do vacancies go through the roof, but prices in the less desirable neighborhoods tend to get hit first and the hardest in a recession.So, to summarize, quality of cash flow counts as much as quantity, and that is mostly to do with the quality of the neighborhood.

Not much cashflow but I'm counting on appreciation and refinancing after year 5.With Scenario 2 I get all expenses but not depreciation.How do I account for income and expenses if I don't own the property but rather have a master lease?

Closing costs and commissions count as part of the sales price.

I'm 21 and less than 4 months away from graduating; I graduate August 22nd and I count every single day until I get my degree in Organizational Management.

In this case, would the seller financing be counted as mortgage boot?