Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment. 

Purchase price: $160,000 I purchased a two story home by a military base from a family member for $160,000 but it is worth more.

Based on what you've said here, I'd probably rent it out as-is for a couple years and then 1031 in to a higher quality area. 

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Because based on those answers, you can just get a conventional loan. 

It's all relative and subject to change based on each individual person.

Based on conversations, I think it might be a little of #2.  

I trust his advise but I feel that its not worth taking a chance and I should ask her to politely leave based on the fact that she has lied on her application. 

The analysis also reports that new multifamily development will “remain near the average recorded over the past five years”.Integra Realty Resources’ 2017 Commercial Real Estate Trends Report ranks Pittsburgh #2 on its Top Markets by Multifamily Transaction Volume Based on YoY Change.Pittsburgh’s rental vacancy rate has declined by 25% over the last five years.Pittsburgh is booming with developments (see reference #6), “there is no better place to be a developer right now than in Pittsburgh.

But, my answers are based on my actual experience being a real estate investor for the last 12+ years.I am 41 years old and currently own 160 units.