They may be selling them but will it cover all the original investors equity?

Plenty of rent money to cover the PITI.) 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

My recommendation is to get enough income to pursue a 25% downpayment, enough reserves to cover most of capex and vacancy.

You even indemnify GPs against false claims and sign to cover legal cost.

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

This is a more general term used by some insurers to cover all lenders.

The goal is for the rental income from the units to cover all of or most of the mortgage, multifamily house hacking, if you will. 

They'll typically require ~10% down and then cover some or all of the rehab.

Also, I've added about $250 to my monthly costs to cover utilities.Looking on Furnished Finder, I do see plenty of places in my approximate price range, so I thought my target (average of $1100/room) was competitive and reasonable.