I have a duplex in a 1031x that I would love to drop and get a 6-12 unit; but in this market there aren't any in my area that measure up to what I want for a return and values are just as likely to go down as up IMO.

Typically a quarterly requirement is considered stringent for loan reporting where annual requirements are the norm. 

Therefore , I take all measures to avoid it :- Encourage the PM to get me a long-term lease and willing to do price reduction for that .- Make sure PM takes good care of the tenants. - Prefer families w/ kids in desired school districts ( how often will they want to move ?

South Lake Tahoe residents are going to vote on Measure T, November 6th, which would BAN most vacation home rentals in the city.

They are both slow process, going to be much more stringent on the inspections and can come off as a weak offer to many sellers.

When you pass 4-5 or more, these requirements become more stringent.

There's no real 'fair' way to truly separately meter the natural gas used for the different units, unless you get into rabbit hole land of re-inventing a wheel and a series of sensors measuring heat and air flow within separate ducts, on your (customer) side.I'll comment on each option individually and your decision will be numbers driven. 

In that case, you need to measure the likelihood of getting another tenant at your over market price vs. getting one at market rates, if that is what the tenant wants to pay.

Otherwise, I think you're wise to measure the return on investment associated with renovating your units.

Take your measurements and price around.