I am willing to bet more than 80% of the people trying their "luck" at REI fail, miserably.This obviously tells you something truly is wrong with this niche/model!

I really see Columbus Ohio as an extremely safe bet for the next 10-20 years.

I think they are making a risky bet w this property, buying at a 5 cap rate, loan is fixed at 5.7% and 2 new properties about to open very nearby and who knows how many in construction phaseVillas at Sundance | Investment Opportunity (vikingcapllc.com)You are very lucky to live in Austin, fastest growing big city in country, and a micro-cosm of the global economy, this too gives you an educational edge

This makes it a safer bet than unpredictable market investments.

Your best bet is to consult with a few contractors to get some bids and go from there. 

It would be best to get it from friends and familyThose with little experience are struggling to raise money (I am in a group with 20+ syndicators and everyone is raising less and those who are first timers are basically drying up after first $500k-$1M)As mentioned syndication route would be your best bet but make sure to have a great plan in place on what you are going to do and how you will exit

Do you know trustworthy contractors that could complete the required work?

I know of a couple of specific very trustworthy operators/funds that are paying between 8-12% preferred returns with participation in potential appreciation.

I'm also hesitant to bet heavily on permanent tax deferral strategies (e.g., "buy, borrow, die") as a lot could change about the tax code over my lifetime.

I bet the seller is motivated to sell.