If the issues seem overwhelming and beyond your comfort level, it might be wise to pass on this property and look for a newer one that aligns better with your experience and budget.

That means higher investor level prices and thinner margins.

I try and provide feedback that is typically contrary to popular opinion because most of the people here on BP are newer and do not have the experience that others have - so when I see people telling others to do X or Y which has significant risk because they thinks it’s easy - most do not know the skills of the person on the other side of the post and sometimes it’s better to err on the side of caution or atleast let everyone know and be aware of the risks.What I would tell anyone buying real estate today is expect to hold it 5 years before considering selling it if you expect to make any money on it.

I've got to go take care of some HUD tenants James, sorry I didn't answer the question to your satisfaction, I can imagine that must be frustrating for you to think that I have to do something to the level in which you require in order to be sufficient.

I don't like that their website only talks about "project level returns".  

Investor Consequences: Restricted Cash Flow Growth: Investors may experience reduced income over time since rent increases are typically capped below market levels.

As a private lender myself, this is something we routinely fund in my markets because of this lower asset levels.

welcome to bp, your sentiment around leverage is 100% correct, and I'd challenge you to follow your own advice and use that leverage to put as little as possible into the real estate rather than the coveted "pay cash for it" or while one can pay cash, utilizing your w2 to refinance is a unique skill and ability you can have.house hacking in the mid west is where its at for sure.

What level should I start at?

Typical terms: Lenders might get 10% to 30% equity, depending on how much capital they provide and the project’s risk level.