Profitability to us = cost (mortgage) plus expenses (utilities, housekeeping, furnishing, supplies - long list) exceeded, plus at least 10% of downpayment recaptured every year. 

The daughters are paying all utilities, property taxes and other expenses associated with the property.

In the end, refi to pay back the HELOC and roll everything into a new loan on the property.As with the original posting, I too want to utilize the HELOC for rehabs since I am not able to finance that portion with a conventional.

I have a few that receive discounts for services like @James Wise mentions.In an environment of ever increasing utility costs and rising taxes, sometimes the best I can do is raise a good tenants' rent by, say, $25, then include an addendum with that rent raise that 'reduces' their rent by the same amount for continuing to pay on-time and in-full with no neighbor complaints.  

Hello,I've been looking for creative methods to utilize the funds in my Self directed IRA to purchase Real Estate.

Some of my non real estate friends don't like sports either. 

But in general, if you have a piece of land with utilities already running into it, it should be much easier than going with bare land. 

That is why there are so many shared homes.1 hour away from full weekends of sport, dentist,  friends is like moving to another state and the gas costs don't help. 

I realize you have been utilizing the site more than I thought. 

I didn't include utilities because they are charged to the renter.From what I've read, the rule of thumb is between 45-50% expense of rent.