If your opt-out percentage is too high then it may look suspicious to the carriers; ultimately, affecting your delivery rates.The goal is to keep you opt-out percentage low while maintaining compliance. 

We’re at or near record low foreclosures, you’re farming a hard row. 

@Emily Gowen so as you pointed out you would not have to do a 1031 exchange on your current home to avoid the capital gains tax and coupled with what Dave Foster pointed out I think, speaking from experience you would have a high likelihood of success. 

I'm a little curious about some of your assumptions: 1) Vacancy at 3% is very low (5%-8% is more common), 2) 5% income and 0% expense growth aren't realistic - more common is to have the difference between your income and expense growth around 1%-2%, 3) Paying P&I during rehab isn't common - normally this is setup as an interest only period until the property is stabilized and then do a DSCR loan, 4) A proforma cap rate of 9.21% is very high for this type of property (this more of a cap rate for a Section 8 property).

You also need the operating cash to do rehab.I say this because you mention FHA and low money.

Unless you bought in D class, very low appreciation area, you should be sitting pretty. 

They use leverage in some of their funds, which can increase returns, especially if they have a low cost of capital (but potentially increase risk and trigger UBIT issues).

Syndications seem to me to be low control, low liquidity...Obviously others have different goals and priorities and so syndications will be a better fit for them.   

@Ryan Prichard one of the better options out there that can handle commercial properties, for what I'd consider a "low cost" platform is Hemlane. 

You could have just caught the right breeze, or the low rates might have given you a spurt.