In some instances the select few who fall under this category will build for themselves and if they were to take up 3rd party work they would want upside.

The desire for 10% down comes from maybe being able to do it this fall instead of three years from now--financially it might not make sense, but extra time with family is priceless.

Combine that with rates that are near high for this century.  3 things could solve this 1) RE prices fall (that would be bad for me) 2) rents increase a lot without RE prices increasing similarly (this would be bad for tenants) 3) rates fall a lot.  

Those who fall under this category prioritize the BRRRR over all else.

If these groups are significant, it suggests there’s pent-up demand that could enter the market when one of two things happen:Rates Drop - Rates fall to levels that allow more buyers to qualify for the homes they want.Buyer Expectations Shift - Buyers realize that 5% rates aren’t coming back soon and decide to move forward.Based on the increase in activity I saw in Sept and Oct in my business, when rates hit low 6s, I'd say my market has plenty of pent-up demand. 

Downside is good cause eviction law passed back in the fall.

This implies residential units can be built at lower costs and provide better return. 11) adding an ADU to SFH can make the SFH fall under rent control.

The new buyer brought a new down payment that made me whole and then some, and despite the original buyer falling behind, I continued making the underlying payment on the mortgage with reserves from his original down payment.

I was hoping the perfect solution would just fall from the sky.

I wouldn't fall for any deals in the D or F areas where the prices look like steals...