I hope to use private capital to fund the entry fees in second position.  

What are some other emerging markets maybe with a bit lower to cost to entry for a BRRRR strategy?

I have personally purchased large apartment complexes from REITs and know how poorly some of them manage their properties. 

I 100% agree with the intent aspect and that is an important premise, but the fact is in this particular situation intent for it to be personal use has been confirmed (by way of a public post).

Personally I'm working on a very exciting niche, but will take some time to pull together; and I'll give you more details as it moves ahead. 

I was the first person to partner with them. 

Do you have personal experience with these?

They will schedule an inspection to verify that the second bedroom does in fact exist in the apartment.I am not sure, I believe it’s because this apartment is only being rented by one person on the lease.  

Definitely a personal preference.

@Shawn Questa I agree with you that there could be some opportunity here, but personally, with that little equity in the property, I'd wait for the pre-foreclosure process to start and  perhaps you can do a short sale (though I don't know the details on how that's handled in TX).