After paying a competitive rate for the property management and ASSET management that the small operator does himself.  

I imagine cost of labor might be a little bit cheaper in Idaho compared to Connecticut as we ended up paying 10k for gas furnace and 5k for AC with 10 yr warranty for Lennox product.  

I own a 30-unit community and found it much easier and more cost effective than the 1-4 family and flips that I was doing before that acquisition. 

For higher priced properties the 70% rule gives you too high of a profit and your offer won’t be competitive. 

Seller financing can be a fantastic way to get into a 4+ unit property, especially in a competitive market like Chicago.Have you started reaching out to owners directly or networking with agents who specialize in multifamily properties?

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

This puts the home underwater.I've calculated the following two options: To sell the house, it would cost me about $60,000out of pocket.

Yes and a few bookings on Airbnb cost your ranking on Vrbo.

If a person has RCV or ACV policy makes a huge difference, than question of what coverage level people had and if they had policy add-on's that cover cost over-runs and all that fun stuff, not to mention contents. 

Past success is a good indicator of future performance. understand the risk if the project takes longer or costs more.