A deal that produced a 25% net IRR to investors with a 1% acquisition fee, 1% asset management fee, simply pref + single tier waterfall, etc, may only produce a 15% net IRR under the current fee and carry structure, if their acq fee went to 3%, pref went down, they now have a GP catchup and multi-tier waterfall giving them higher splits for higher returns, etc.

They’re simply projecting their own incompetence onto you.

And compare that to simply refinancing.

Whenever I speak to a group of students interested in real estate, I always stress the importance of networking and simply asking people to coffee.

For the 10 year period spanning October 2014-2024, single-family prices in Austin nearly doubled, yielding an annualized appreciation rate of ~9% in that period.With inflation nearing its 2% target and signs of a slowing labor market, The Federal Reserve recently made its second cut to the federal funds rate since the start of the COVID pandemic.

Some of the comments above are simply ignorant to what lenders allow and don't.  501c3 falls in the same area as non-recourse loans for the most part. 

Ended off just simply putting a carpet over it.

Additionally, as long as you put 20% down, it typically keeps you safe in terms of cash flow, and then you simply have a couple dozen houses with tenants paying off your mortgages.

Finally- you can eliminate 95% of the troubles and risk by simply having professional and legal screening and management processes, so don't sleep on that piece. 

The question that I'm mulling over is, "Do I step in to fill that need, since I have the property management experience and contacts prior, or do I simply pursue investing and manage my own properties?"