Lets say you have 3 rentals that rent for $1000/month and you cash flow $300/monthEach month you have GROSS rents of $3000/month or let's say $2500/month after paying PM costs, repairs, etc....BEFORE you pay the mortgage.If you get the rents on 1st of the month and you pay down $2500 into the HELOC, but you don't have to pay the mortgage ($1600) until 15th of the month.NOw you have paid down principle in the amount of $2500 for the first 15 days and $900 for the next 15 days.If you use the traditional method, you only have $900 extra money that you may or may not use to pay down your loans.   

I've since had to do a service call for the fridge and had to replace the oven recently as the repair was going to be about as much as a newish used one that was in great shape. 

@Yents Ybrimovic If the 203k loan only requires 3.5% down and you can finance all the repairs in the loan - then what exactly is your friend contributing?

Total hands off, perfect property, with awesome tenants who pay on time or early and never ask for any repair. 

If you are going to add value to the house you might be able to get an equity line against the property to use to fix up the property or negotiate some repair money from the seller that you get at closing.

You are best off getting a plumber out there ASAP to identify the leak and repair it.

However, what I would suggest based on your expertise as a contractor is going into a semi-fixer upper and make minor repairs to boost equity as well as savings. 

-I inform the Water district that our repairs are done. 

I usually suck up all the plumbing issues with LTR because I know it will just waste my time and of course plumbing is the most expensive repair every single time. 

I know what the rents should be for each of the units (2 vacant and 1 significantly under market), the taxes are listed on the MLS, I’m familiar with the water/sewer costs in close proximity to this building, and I know what percentage to use for my Vacancy, CapEx, and repairs and maintenance based on my knowledge of the local market.