I'm going to try this list 1-2 more times (i'm having postcards sent out again this week), and if i don't see improved results then i'll be changing things up and putting a list together centered around divorce and default (i don't want to deal with estates and i wouldn't know where to start with the disaster factor).  I

You are going to have to find out what actual market rent is for these kind of apartments.How are you going to figure out how you will be making money out of this deal if you don't know where you can be either more efficient or more profitable?

Installing low flow shower heads and more efficient toilets, etc are a big business because it does affect value so much.

The time factor is a very interesting question and I do think about it a lot.  

Let's say that commercial properties take 2-3x times as long to find, the number of units you're dealing with is much higher so you're much more efficient and able to scale much quicker.Additionally, generally on residential you make your money on the purchase.

By my calculations, within a year, we will be able to use cash again for our next few purchases, be in a much better debt to income ratio, and still have the availability to use a significant amount of the HELOC if necessary (all my numbers have us paying off the HELOC within 18-24 months using the same amount of money I'm paying monthly right now, just more efficiently).I know it might seem contrary. 

These homes are in need of serious repairs, but if you are very handy / efficient and can keep costs down, there is significant equity to be had.

So, if that's the case, if we buy a property where we can "add value" by renovations, adding creating income streams and improved operational efficiencies w/better property mgt that reduce costs we are going to be able to raise the NOI (increasing income - decreasing expenses).  

As opposed to most REITs, these sponsors would look at value add / special situation / turnaround deals in the B/C class category (think 1980s apts that need a facelift, remodel, bring in new property management to improve efficiencies / NOI) where they could create massive value in a short period of time, then look to refinance and eventually sell the asset.  

By manage I mean efficiently schedule and follow through with maintenance items.And by maintenance I am referring to things that need to be done annually or semi-annually, like changing furnace filters, cleaning gutters, checking smoke alarms and fire extinguishers, spraying for pests, leaky faucets, hot water tank maintenance etc.