I am left feeling that working with them was a wasted investment and decided to cut my losses and move on. 

When relying on LIHTC to make the deal pencil, yes developers wait BUT only if they have the resources to wait and only if the property owner is willing to not close on the property until the project is fully funded.

If you have a partner and are a minority owner or LP in the deal, you may find something, but that doesnt sound to be the case from your description.

As a rental strategy for non owner occupants, it absolutely is a fantastic way to generate the highest return, that's true.....but also, and most importantly, your screening has to be on point, and without that, it won't be as effective because one bad roommate can ruin the environment for the other roommate tenants. 

D- Portion the cash in the IRA with other owners cash or partner with someone and apportion it back to the IRA when the deal is complete. 

In many cases, it weakens the lender's position as they did not underwrite the buyer and an owner-occupant tends to pay better than non-owner-occupants.

The only time we will not make an offer site unseen is if we run into a situation where an owner or a realtor won't accept site unseen offers. 

Even in a lousy economy, college towns generally grow in demand because people go back to school.  304 N Jefferson Moscow ID - Single-family craftment house on triple lot in R4(high density in my town)  Price - $325K, $100K down owner carry 5%, I am converting into a duplex. 2BR 1 BA - $1600,  4BR 3BA $2600. 

Account Closed a PMC has two options to get liability insurance (tenant slip & fall) protection:1) Get added to owner's policy as Additionally Insured (NOT named insured).2) Setup a master commercial policy and add every property they manage to it and then charge those owners the cost of the policy.Otherwise, a PMC CANNOT get liability coverage on a property they have no ownership interest in.So, nothing wrong with their request.

Keep track of 3 buckets.1) Owner occupied portion - potential deductions for schedule A2) Tenant occupied portion - potential deductions for schedule E3) Jointly occupied portion - likely prorated for both schedules.There are nuances to this, so I recommend looking for a tax pro who can coach you on this.