A 3 or 4 unit must also meet the self sufficiency rule (75% of total projected rent must cover PITI plus mortgage insurance).

I’ll take the hit.What you need to do is see where your acceptance policy lines up to the typical renters in the area.

I pay mortgage, taxes, insurance, repairs, management, etc.Account B: Tenant security deposit is held separate from all other funds to ensure I don't spend it.Rent income should be more than enough to cover the mortgage so why are you putting money into the account?

If tennats want changes you must insure that lisenced contractors are used and supervised by either th elandlord or their PM.Never allow a tennat to do any work, not even painting. 

I am doing a quick close on a property (15 days close with conventional loan) and I am paying 5% in closing costs and it doesn't include taxes/insurance etc.

Hire a title company to do it for you, that offers title insurance.

I hired a licensed/insured mason to do the work.

Your mortgage is 587, plus another 100 or so in PMI, for 687.You’ve then got vacancy at 8 percent, maintenance and capex at 10 percent (if everything is new) So that’s 297 plus taxes at say 100 a month and insurance at another 80-100.

I'd live in the other unit and still pay close to $600u/mon for utilities, taxes, insurance, repairs and capex.

Title searches, insurance, and other costs aren’t necessary on a HELOC, and that translates to less cost up front as well.In addition, lenders look favorably on those who use their current home to put a down payment on a second home.