The amount of financing is not a factor in calculating the capital gains tax on the sale of an investment property.  

I don't know cost details yet, and obviously that's a huge factor, but I was just curious if anyone here had given it a shot and how effective it was.

Those improvements are probably already factored into the price.Might make sense for owner-occupied considering you would not have another housing payment and or cash purchase which don't sound like a good fit for you at the moment.Nice job of coming to a decision based on good data instead of "ballparking it."

I use 55% to 60% expenses of SGI depending on factors that might cost me more in a fringe area.  

And always factor in active listings, sold listings, expired listings, and active/pending listings.

Tenant should adhere to a healthy lifestyle and perhaps engage in professional sports like football lineman or basketball center. 

Factoring age in now, I'm wondering if two or three multifamily rentals over the next 3 to 5 years (trying to be realistic) will really get me that much closer to the financial independence I'm looking for out of real estate.

After you factor in HOA dues (if any), property management, vacancy, maintenance and capex, I think you may be lucky to net $20/month in cash flow.

Is anyone doing both purchasing/brokering discounted notes and factoring? 

Assuming you are a buy and hold investor, you'll need to generate $4100 of net passive income from real estate to be able to quit your job and not affect your lifestyle.