The community property exception does not require that the operations rise to the level of a trade or business or that either spouse materially participate in the operations. 

Quote from @Jordan Ryan: Joe Fairless - Best Ever Apartment Syndication Book, A-Z with everything you could possibly think of about starting and running a successful syndication.  

its highly risky for most mom and pops to sell on sub to.. and its simply not a way for those without substantial wherewithal to buy property and keep the seller safe..

The 10% vacancy and repairs, along with 5% capex in my opinion are pretty high. 

Like you we had 3 teams of two door knockers  2 for safety one women one man.. and we door knocked every NOD in our 2 mil MSA  all to boil it down to if we were very lucky to get 2 to 3 deals a month.. now we were a little different I only would buy very high equity deals.. and we leased back .. because as you state 99% don't want to leave.. 

I agree that pricing a rental too high is a classic mistake than can make it sit, but don't you think encouraging landlords to rent quick will make them compromise on the vetting of the tenants?

apartment complexes?

Is this expected since interest rates are high and listing prices are subsequently dropping? 

Inflation itself in the midwest territories will rise over time at a conservative 3% regardless.

In terms of the illegal 1 bed cottage... so this isn't uncommon in my neck of the woods (NYC) in terms of something similar (basement apartments, garage apartments, etc.)