They will argue the fact that they have are only behind by one month and that they have always paid (25% of our tenant base is late).

DSCR loans also allow real estate investors to secure financing based on property cash flow rather than personal income, which simplifies the application process!

Why are you using rules of thumb and not using the results of the thorough inspection by a great inspector that you are surely using and would be an idiot not to base your numbers on? 

Based on the knowledge I have of the neighborhoods fundamentals and trajectory, will the most likely buyer still be an investor 5 years from now?

I would be less concerned about trying to pick land based on future appreciation & selling. 

So don't let your contractor pick "whatever" color.

Amazon has the from 40-180 based off the quality. 

With you being an out of state investor, I assume based off your Denver location, it is vital that your property manager does their due diligence beyond just getting a rental verification.

I assume you're flipping this property based on the scope of work. 

Live in new home while it appreciates for 10 years until I get a faculty housing spot, sell private market house, put proceeds (minus downpayment) in bank for retirement (I estimate this will be 1.3 mil before capital gains and real estate fees based on 7% growth in a very desirable Southern California location), and take out new loan for lower cost faculty housing.