She's a beast and you'll likely get approved which will give you a revolving source of funds to keep growing Griffin what terms are you seeing on products like this? 

Since you know what you need to buy it at and an average rehab cost, I would say $50-70k for a cosmetic flip, set the ARV based on the sample you choose and doing comps and ask them if they would invest in a deal similar to this. 

Also - if you invest that 500k in an S&P 500 tracker - you'll average 8%/year - 40k.

What are the expected average rents for the 42 units?

What is the average spread in the market(s) you are in for flips?

@Christina Galdieri  A 1031 exchange is specifically designed for real property held for productive use in a trade or business or for investment.

That would have been known up front if that was the original loan product being used.  

Seller has 100% responsibility for revenue production, buyer has no controls of revenue production, it impedes the operations, etc etc.. 

Small shop brokers that have access to multiple programs so that they aren't beholden to one or just a few loan programs will typically get the most competitive product for the borrower. 

Book recommendation #1: Hands Off Investor by @Brian Burke https://store.biggerpockets.com/products/the-hands-off-inves...Book recommendation #2: Lend to Live https://store.biggerpockets.com/products/lend-to-livePodcast Recommendation: PassivePockets podcast is focused on passive investing in syndications - https://passivepockets.com/podcast/Passive investing summit: PassivePockets Summit May 2-3rd in Columbus https://get.biggerpockets.com/passivepocketsevent/I make these recommendations specifically since you mentioned passive real estate investing, and syndications or hard money lending are really the two most passive ways to invest in real estate.