If you were to purchase a much larger building, you could almost certainly increase your return on equity.

As i stated earlier, I would be conservative and increase your vacancy to 8% unless you already have a wait list of tenants.

If the deal finder were to receive equity in the deal, it would be a maximum of 20% (15% is more likely).That said, if you are interning for this experience investor, a salary is also another option.The increase in your compensation will be in the experienced investors' control.

Increasing bathrooms, refinishing whole house woodwork, updating all mechanical items, and adding those modern touches throughout.

Its based on some fancy algorithm and obviously doesnt take into consideration the interior of the home..  

With those increases (a total increase of 14%) that wipes away $343 of your projected cashflow and puts you into negative cashflow post-refinance.

What would be a good exit strategy knowing that the HELOC payment would increase substantially once the interest only period ends?

Unit A- Originally rented at $825-> Increased to $900.Unit B-Originally rented at $750-> Increased to $1,000.

A friend of mine was trying to buy a beautiful house that used to be a grow up (considerably below market value) but they couldn’t get a mortgage .... and it was remediated but the record stays on for 10 years. 

Or is it in fact a shorter, 5 year, hold and flip before expences increase.