From a strict buy and hold for passive rental income i think it is a pass strictly based off these numbers:your rental income is 1850Your listed expenses are 888if you finance this for around 148-150K mortgage going to be paying around 800 a monththats 1,688 leaving you with 162/m cash flow without a property manager(assuming you do the work yourself)**Maybe look to move the utilities onto the renters to increase margins **CASH on Cash is about 4.8% to manage this yourself are razor thin numbers. 

What you don't want to do is run such tight margins that your only hope for reasonable profit it to squeeze it out of the contractor.  

I figured my margins should be high enough to make up for those costs.Since this is my first investment, I'd like feedback.

Most of what people are buying is at the top of the market and they will have small margins to work with.

Also, a lease option allows a more marginal deal to become a better deal by optioning it.

There is obviously more risk with rehab and maintenance costs eating into your margin, but our team is pretty competent in assessing the risk and dealing with the work. 

Find a good real estate investor offer calculator and run your numbers to ensure you have good profit margins.

With so many partners in a syndication, would the roi be of marginal success?

You borrow on margin.

Basically, the commercial lender wants to make sure you're not living off the property's income, it covers its own expenses with adequate margin for error, and you've got more than just your downpayment in the bank, in case you have to come out of pocket to cover some rough times.