Seems like you could put together a set of metrics that you could use to give you the trajectory of a neighborhood and from that anticipate correctly what the "tipping point" for investment would be.Currently my strategy is to put in the work to find distressed homes in healthy neighborhoods that are a potential for value add, but I'd also like to look for things in up-and-coming neighborhoods.I was thinking about this for flipping because I don't want to get stuck holding a property that won't move, so I understand that many of these things might be better for a buy or hold strategy.

You do not do anything with the property versus multifamily the partnership has to watch over the management company and review the reports to make sure the investment is performing as anticipated.

Anticipate a market crash.There are sellers out there who WILL thrown away their money. 

I could hardly sleep last night because I was anticipating @Justin Silverio 's Meet Up at his recent reno project.

Your $114 per month anticipated "profit" will be eaten up as follows by some typical landlording scenarios:Plumbing problem - 6 months worthAny vacancy (2 months) - 14 months worthRoof - 131 months - 10 years - it would take you half the life of a roof to pay for one.Run, don't walk, away from this one.

The $76k was total profit, split between my partner and I. so your rehab came in double as anticipated and the ARV came in $100k over?

This is a great advantage if you ever anticipate outsourcing bookkeeping.  

Knowing what the anticipated water bills are you should be able to build it into the rents and then reevaluate when leases are up for renewal and update accordingly if you are seeing the water bill increase over time.

One of the home inspectors I've used regularly now gives me an "unofficial ballpark" on the cost of the issues he can see in voice, but doesn't want to put it in writing to make sure he's not liable should the problem/cost be much greater then he anticipated.

I'm anticipating my rehab costs would be around 32% percent of this projects costs.