First, the market conditions in Northeast OH may be influencing those lower projected returns, especially with rising rates and more limited inventory.

Apparently, not only did they sell at a loss, I didn't get any money back at all and they claim I owe them an additional $40,000 for "renovations" despite no work being done to the building at all. 

Contributions for development and remodeling will be capitalized, increasing the property’s basis and reducing taxable gains upon sale, though these costs are not immediately deductible.The LLC Operating Agreement must clearly outline how contributions are recorded and how profits, losses, and expenses will be distributed.

Without these replacement jobs, only lower-paying service sector positions will remain as area incomes fall due to the loss of higher-paying jobs, city services decline and crime increases.

A third consideration is that FHA has rules for limiting rentals in developments. 

Yes all losses and returns the IRA incurs stay in the IRA until you take a distribution. 

I expect greater than 10% just for the loss of residential F/f financing.at 10% difference, or even 15% difference, coop would be up there with lot splits on sophisticated value add.  

They are either speaking out of their limited experience or claiming something is legal or illegal based on personal preferences. 🤓🧐  thanks  Scott:)

Consider house hacking with an FHA loan for lower upfront costs or explore creative financing options if capital is limited.

I'm now aware of any "lifetime" limits for FHA loans, but you're required to live in the property for at least 1 year after the loan starts.