I'd recommend interviewing multiple realtors, property managers and lenders to make sure you build a solid team. 

Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Here was my experience house hacking in my 20's as well: https://www.biggerpockets.com/forums/922/topics/1133476-hous...Cash reserves have saved me multiple times, but my properties were both NOT renovated. 

Very different terms than what your friend is seeking but more aligned with what your friend can offer the transaction from an investor's perspective. 

Not sure where your research came from but what I was basing my perspective on, was from a professional working knowledge of being on the ground observing.

The GC can handle the entire project, coordinate different subcontractors and make sure the project is completed per building codes - especially if the rehab is complex or involves multiple trades like plumbing, electrical, and carpentry.

But after an exchange - sign the purchase documents with one pen and pick up another pen to sign the refi docs :)Another strategy you could consider is reinvesting into multiple properties, where you purchase the first property cash (ensures some security and concentrates the equity) and the second property with a mortgage.

•If you can, raise rents or find ways to increase the property’s income before applying again.Have you already tried talking to multiple banks, or is this feedback from just one?

And if you really want to diversify, invest into multiple replacement properties with the proceeds.

I mention all this because it's not a jammed up, slap dash space but from an insurance perspective do you think I should be concerned about the interior inspection and the 2 family zoning but 3 separate tenant discrepancy?