Unless you buy Cash you can forget about cashflow in NZ as the returns very low, most of AKL residential are selling at 3-5 Cap and commercial is around 4-7Cap on good day. 

Atlanta has the best bang for your buck.

2) If I use delayed financing, my understanding is I can access up to 100% of the ARV, but it is capped by my acquisition cost (including closing costs).

For air conditioning in this scenario, you could install a ductless heat pump if there is sufficient demand.Regardless of your choice for heating system, you will get your best bang for your energy efficiency buck by improving the building envelope (air sealing, additional insulation), which may necessitate the addition of a ERV/HRV to maintain air quality in a tighter building ... but it may also allow you to use a smaller boiler/furnace to condition the building.

What if your strategy is to hold each property in the 5-10 year range before Cap Ex?

However, there is a cap on that profit - $250,000 for an individual and $500,000 for a married couple filing jointly. 

In commercial property they often use Cap Rates, which you can look up that are similar to what you are contemplating. 

Cap rate is listed at 9.16%.  

It was our next door neighbors property who was in bad health so not much thought went into location or cap rates or anything like that. 

CF really doesn't work very well for most syndicators right now with 12-month trailing caps limited to $1M.