Also, I'm sure this is an ignorant newbie question, but what are the Levels of alteration you are talking about (2 vs. 3?) 

Ignore the buzzwords and make sure you are aware of and comfortable with the amount of risk you might take on with certain financial instruments. good luck.

I am not advocating ignoring leaks and not beneficially using water but it's not the same as wasting energy.

Though little but of ignorance on my part as I've only been through there a handful of times.

If they say the numbers won't work, that's your opening to ask if you could help out for experience; if they ignore you or don't offer anything constructive, you know it's a dead end without having asked for a handout.

I have a (probably ignorant) question: If you own a non performing note and you foreclose, are you obliged to put the property up for auction?

I've heard of closing attorneys, title companies just ignoring.  

If you give some more details, I (and many others on BP, I'm sure) would be happy to do some analysis for you.As far as appreciation goes; conventional wisdom on BP tells you to ignore it and just consider it icing on the cake, but I mildly disagree.

Figuring out how much money you spend and then dividing that by the $200/unit to figure out how many units you need ignores the variability associated with the type of property and tenant class.

The reality is people are relatively ignorant and inefficient.