We have renovations to do once we assume the property, so my question to you is, what accounting measures/tracking should I use during this process? 

Most people blow the budget in the first month.Test and measure everything, then go back and make tweaks.

The IRS regs on much less stringent on 401k funds and you can even use debt in some cases without triggering UBIT.

It's a totally different ball game, investors in those areas almost always pay cash and all through they are getting a pretty small return based on the cap rate if you measure their return based on cap rate and appreciation it will be much higher than north or south Seattle.Here's an updated list of distressed and investment properties for sale around Seattle.

Pens and paper,  applications, a tape measure and measurements of the rooms. 

Many include provisions for breaking the lease, such as a two month fee, etc.Also, if you break your lease, typically local laws require that landlords take  reasonable measures to mitigate their damages.

Well, I like what they have to say about "rule of thumb" here:http://dictionary.die.net/rule%20of%20thumbTo quote in part-Rule of thumb, any rude process or operation, like that of using the thumb as a rule in measuring; hence, judgment and practical experience as distinguished from scientific knowledge.IMHO, this particular rule of thumb applies only to the long term buy and hold REI model.

They've been sent to committee, which is usually a bad sign for anything to be passed, but there's still time for the City to pass additional eviction measures before June 1st.

But you could then do a 1033 exchange which is much easier to do and less stringent in restrictions. 

Measure the opportunity cost.