If the business life cycle cannot be survived, deflation will exist and that is the worst outcome. 

Start with this 2012 post by Joshua Dorkens stating there are 28.1 Million "Real Estate Investors" in the US. Bigger pockets post
According to Biggerpockets stats https://www.biggerpockets.com/stats , over 1000+ new ...

Yes we exist.

A wrap implies you have an existing mortgage.

I am afraid your ask of 90-100% LTV on a low property price point and minimal experience simply does not exist.

Improvements are cost-effective when the cost of making them is equal to or less than the money saved on energy from those improvements.Cost Effective Test for Existing HomesImprovements to existing homes are cost-effective when they pay for themselves over their expected life span with energy dollars saved.

So, yes, each new offering is an opportunity to move to 506(c), but for these established groups with established networks that are limited by good deal flow versus capital availability there is no need to change the process and compliance requirements needed with a 506(c) offering, since the entirety of their marketing and raise will be limited to existing investors and/or referrals.Again, for OPs purpose, it doesn't make finding them easier, admittedly, but to imply that 506(c) equates to better operators is not true in my experience.

Some are forgivable at a rate of 20% per year and after 5 years they dont have to worry...Others take 15 or 20 years before it becomes 100% forgivable.Some are not forgivable at all...With this deal I would be less concerned with equity that exists and more concerned with the amount of that equity can the "Moderate To Low Income" of a Habitat Homeowner support in loan format.I am almost certain that its possible but your going to want to know the terms of the DPA/ Grant so you're aware of the actual cost and you have to see what the DTI looks like to see if it will fit what theyre looking for.

All this was Friday so I just asked clarification from the management company on why the quote was so high versus existing insurance, or my own agent’s Hartford quote.  

Long story short I’m acquiring the house with existing tenants.