No PMI and little to no money down.

The fact that they knew about this and didn't tell you up front says to me they were hoping you didn't actually run reports. 2) Be sure to know the regulations in your jurisdiction.

@Clark Harbaugh, Given the favorable tax rulings over the last few years (in particular revolving around trusts and their equaling a beneficial interest in the underlining propery) the IRS has actually been much more lenient (or at least silent) on these issues. 

I lost my money, Hope you don't! 

He must have spent gobs of time and money every year maintaining the books and the structure. 

If they do, your best bet is a local community bank that funds these types of properties.Another option is a private lender but that money will be pretty expensive, as mentioned 10%  + 

Instead they go about it a** backwards and add more red tape and more complications costing the city and it's residents more money

I actually used to live in the area and self-managed all my properties while I was there.

I guess the one that makes the most sense is "Reject", but that seems weird because they might have actually passed screening.

But by coming together with others, one can get in the game and put their money to work in these bigger, potentially greater return deals without having to do it solo.