As mentioned earlier in the thread by @Chris Seveney, real estate prices have been going up particularly in Northern New Jersey, so a lot of tax appeals are pointless or do not make any sense.

As already mentioned, he wouldn't be able to use rent from roommates to help qualify but based on the numbers you shared there should be a VA option available considering how much flexibility there is. 

One thing I am finding is the reviews for some mentioned firms are all over the map.

The section references age in many places, consistently mentioning the end of the year.

Like others have mentioned, there’s appreciation, depreciation, leverage, and tax benefits that produce a compelling risk adjusted return. 

Not to mention the upfront cost of furnishing. 

@Kody SmithYou mentioned syndication.  

Quote from @Christene Martin: Hi Christopher, I am familiar with the NJ areas you mention.

Key Deal Points:Loan Amount: $88,000Lien Position: 1st position Purchase Price: $120,000Appraised Value: $250,000Interest Rate/Return: 11% annual returnTerm: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)LTV ratio: 35.2%---Licensed Lending company for contractsRMLO package completed on buyersServicing company for payment You have not mentioned anything about the borrower.

A full schedule should be mentioned once the final plan and scope of work are discussed.