I don't think I necessarily agree, since your opinion of the real estate cycle might differ, just like banks risk profiles and desired portfolio components will vary, and it is up to them what type of risk they want to assume.  

To be candid, this may be one of the most important and most overlooked component of choosing a syndicated investment.

buying the first random property you see that needs a rehab likely will not work - every component for a BRRRR has to be in place at the start or it will just turn into a money pit.

I would rather have a smaller group of larger investor amounts.My set up is commission going in and out because I am a principal commercial broker, equity percentage, and cash flow payout after the investors get paid first.If a lot of those components were stripped out it simply would not be worth my time as I do very well transacting commercial deals for my clients.     

Purchase Order Funding for Manufacturers and Construction Industry ProfessionalsSpecializing in funding Purchase Orders and Projects in these areasIndustrial / Manufacturing GovernmentConstruction Retail and ApparelDirect Shipment Service ContractsDirectly funding project costs for:Deposits - Raw Materials - Components and Sub-Assemblies Project-specific Labor - Finished Goods - Overhead - Direct Manufacturing - Shipping - Letters of Credit - Letters of Guarantee- Capital equipment and MoreHeritage Estates Commercial, LLCCommercial Advisory Services347.721.9838 Ext 705

If you use a shorter term then the principal component of the payment eats up more of your free cash flow each money.

Not to mention that by doing all the renovation you have done you have essentially taken all of the value add components out of the equation, hence making it less desirable for another investor.

The house is not a money pit, being all the major components have been replaced or will be in the next coming months.

Permits and inspections help preserve property values and enhance health and safety of the community.If you're changing key components or systems, such as structural, plumbing, electrical, HVAC, driveways, etc... then you're going to need a permit to make sure the work is inspected and documented that it meets current code.

Those old homes are sturdy but the components often are not.