(It ended up selling about 9 months later for less than 2/3 of original asking price.)

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

It creates over-leverage and the performance of one property is dependent on the other.

I’m being a bit uncharitable here, but they backed off of their original plan, stayed silent for two months, and then quietly passed a regulation stating four or more unrelated occupants can’t live together.

Performing or non performing or both2. 1sts and 2nds ?

People follow those who have unique takes and are original.

The new property has to perform enough better than what you have to pay the higher interest rate on the higher balance, AND ADDITIONAL profit just to payback the $65k you lost selling.

I negotiated through the original contract and then put the rest of the deal together with an existing group of investors.

I've personally benefits from this and now originate $8M+ loans from the same loan officers who gave me my first $100K loans 10 years ago. 

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!