Larger cities offer better infrastructure, such as international airports, interstate highways, and a broader talent pool, making them attractive to businesses and tenants.Avoid Rent ControlRent control laws can hinder your ability to adjust rents to match inflation, limit tenant screening, and complicate evictions.

What should I look for before making an offer on a property like this?

As MFH is dropping there shorts to get and keep full occupancy, offering every spif imaginable, larger units are to accommodate families of size or multi-gen living is a rare inventory. 

The property offered a balanced investment opportunity—enough to significantly enhance its value through renovations, yet manageable in scope and cost.

Here are my responses to your questions1) Not my area of expertise, but the numbers on this are very strong2) I'd generally lean towards building the CFM, but strategically selling some properties when someone gives you a offer you can't refuse.3) Most HMLs would lend you 75%-85% of your purchases prices plus up to 100% of the rehab costs (though some HMLs like to see the rehab costs at or below the purchase price).

If I create a debt fund that offers 9% interest on first lien notes with a 5-7 year payout, would that be attractive to high net worth investors?

So, not really passive.Investing in rReal estate offers a lot more control than investing in stocks, but it also requires an investment of time to do well.

They tested the appliances thoroughly and offered a one-year guarantee.

Many desirable neighborhoods that offer a consistent predictable return on investment.  

The only thing I will say that I wish they offered within the app that they don't is a way to track mileage.