One of the strategies that has been successful is managing one property myself and using a PM for additional properties that I acquire.  

Also, consider using a porcelain tile instead of ceramic. 

As far as basement conversion, be aware of egress (fire escape) requirements which can prevent using a basement.

It sounds like while technically it’s true that they may not show on my credit report, that when underwriting for the next new purchase using a conventional Fannie/Freddie backed loan digs deeper, they will still count these 5 properties as financed and the new DSCR loan really didn’t help me in that regard.  

Check fridge and dishwasher clearances as well if your using a thicker product over the tile to make sure everything fits.

Have you looked in to a proxy management company instead of using a realtor that might have more profitable business to take care of?

Hi BP,I have a duplex that I plan on using as a long-term rental. 

If using a lender this is a non issue.

That would allow me to purchase and renovate using a combination of HELOC, savings, and bank loan. 

I think the problem is solved, via using a sheet metal diverter to direct the water.