My question is, if this is not the best market to utilize that strategy, what strategies are you finding the most succuss with?   

Basically, you are being paid for a job.Or you can hire a PM (be more passive) and have income after expenses (PM, utilities, furnishing costs, etc) that is comparable to LTR income.   

Also, if you are buying a distressed property many times they cannot be inspected fully because utilities may not be turned on and you are fixing so many things already there isn't much risk in whatever they might find anyways. 5.

We work with investors everyday that utilize this strategy.

You have to work w/the utility companies so why would that be illegal ?  

The property could be more or less efficient with utilities.

Selling rights to a lease, figuring in utilities and vacancy.

To me not even close.Continue this velocity banking process and you will pay off your entire mortgage and HELOC combo in six years and four months.If you had simply made an extra payment of $1,000 a month to your mortgage during this time without utilizing the Velocity Banking strategy and paycheck-parking strategies, it would take you six years and five months to pay off your entire mortgage.

Most tax professionals do not advise their clients to utilize this approach and it may raise concerns under IRS examination.

Before a walkthrough and before signing a contract is it appropriate to ask the seller of a small multi family for:1.Rent Roll2.Property Tax Bills3.Utility Bills (last 12 months) (landlord pays all utilities)4.Income & Expense Statements (summary)5.Lease Agreements (Sample or Overview)6.Recent Maintenance Records (summary)7.Capital Improvements Summary