I'm extremely Sedona STR savvy, as it's 95% of what I do and even I have to bend over backwards and really hustle to put together transactions for my clients that yield these results.

Look at this thread regarding mix and matching Title and loan owernship:  https://www.biggerpockets.com/...You also might want to read this info thread about LLC's:  https://www.biggerpockets.com/...Also, its not advisable to own your primary residence in a legal entity. 

On lake in Kimball area, similar thing although we would be much more "vacation" rental focused so amenities would need to match.

As a result, while the market rents have risen 17% year-on-year, we’ve only raised rent for our tenants 5%.

Just an update...I've since found out that delayed financing is performed using the current value of the home.Which means, all the various forum results I've viewed, as well as other media, which were all saying that delayed financing is based on the purchase price of the property plus the closing costs, were technically correct...

They red-tagged us and we were forced to pay for plans to be drafted, approved, and several inspections before they permitted us - set us back several thousand dollars and an extra two months as a result - still, we were able to complete the project and still appraised for more than we spent.

Colorado Springs is predicted to keep growing, and I think the natural barriers of the mountains and water supply will result in cash flow to come.

It also includes people walking in/out which results in heat loss.I recommend you contact the utility company.

2) With the tenants in the other unit, should I raise the rent to match market value?

The exceptions may be in certain inheritance situations, especially where a “bypass” trust is used effectively resulting in 2 future generations enjoying the benefits of income while paying inheritance taxes only once.