From what I've seen often you'll be much tighter of the deal at higher ARVs than are normally discussed but the spread is still good due to high values.

Anything less is easy to keep track in your head, a couple separate bank accounts (one rent, one rehab) and a couple spread sheets.Real scaling starts when you hire people.

If the damage is to be charged, it should be spread among all the units that had the repairs.  

It sounds risky to leverage your paid for home, but you're actually spreading the risk across multiple properties.

Spread the word.

For my first deal, I would personally look for a property at a higher price point (nicer asset/neighborhood), needs work in the dollar amount of no more than half of what I paid for it (less room for error and mainly cosmetic items), and has a reasonable spread based on comps after taking into account all expenses on a 6 month hold (so I can at least try to break even should unexpected circumstances arise). 

The lender and the borrower negotiate the amount of the spread, which will be added to the base rate.

I've heard people talk about refinancing for a higher appraised value than what you bought it for and then you take the spread and pay back your hard money loan.

In my experience, commercial lenders offer on a spread based on their cost of funds and risk. 

If investing and residing in a small multi-family in either of these markets appeals to you BUTyou still can't get all the down payment or other money together(or you'd like to spread the responsibility and risk with a partner with different expertise),we should talk.I'll be in Phoenix in August and Vegas in October (and again late January-early Feb.) and am open to exploring such arrangements.