Not sure of their capacity right now, but definitely check them out.

This OP, as I pointed out in my previous post, “doubles|down” on the lie that (1) personal assets are not at risk  - they absolutely are as the OP admits, albeit with some non sensible justification about specific assets not being pledged(2) protects personal credit - as already stated the personal guarantee necessary will affect the credit card holders credit capacity , and as such find its way to their credit report, and hence affect credit scoring. (3) is lower risk - this may be the biggest lie of all.  

Buying it based on the pro forma NOI would take away from the value-add strategy because you're essentially paying the seller for the work that you will do and for the increased NOI that you will generate.If you find a multifamily property where the current NOI is not at full capacity and you increase the NOI, then the value is determined by applying the area's average cap rate to your new NOI. 

It's a high desire area for people to live, but the sewer treatment facility is at max capacity.

One of the main issues though is this SUB 2 training to the masses its an advanced strategy for those with substantial reserves and capacity it is NOT something that begineers with little or no funds should be doing so in my mind and others who have done a lot of SUB 2 ( myself personally hundreds of them) teaching this the way its being taught and then networked on facebook this is going to lead to a lot of failed transactions and devistated sellers just will.

One option is to pay down any existing debts (credit cards, car loans, etc.) to free up income capacity.

Everyone has a certain capacity that the operate the best in, find this and stay in your lane.

Full disclosure of the negative consequences (retention of liability without ownership of the asset securing that liability, limitation on credit capacity, etc.) must be provided the seller IN WRITING.3.

He's willing to move his current IRA into an SD account so to have checkbook capacity, however, we found that since we are his children that he is unable to lend/co-invest with us(disqualified persons).

It seems like he needs sometime of supported housing as I don't think he has the mental capacity to take care of himself without supervision.