It might be simply forfeiting the deposit assuming no damage to the unit or a flat fee payment in addition to the deposit.

If you had a paid off rental house, and others with mortgages, and you wanted to use the equity in the paid off rental for a cash offer on another property, how would one do that if the DTI ratio doesn't work due to having too much credit utilization with the addition of the new loan.

I would prefer doing this to get the increased cash flow as opposed to paying additional small amounts monthly.

Section 8 requires an initial inspection of the property, in addition to any other local housing conservation inspections that may already be required depending on the municipality in which the property is located in.

That said, if you're barely making the net worth cut even with home equity - the agencies will likely at the deal with additional scrutiny.

What does $10 per unit mean for 388 units=  $10 x 12 months x 388 units= $46,560 additional revenue with no added cost, other than sending out a notification letter.So, $46,560 more revenue and pure cash flow. 

Additional securitization is most likely required via additional assets.

Additionally, I also have another K1 (LP only)- Since I am not a GP in this deal.

I would avoid this if its your first acquisition  but you also appear to have enough cash to complete the purchase without financing so you wouldn't necessarily be at risk of losing your deposit, only incur additional transactional costs.

The best real estate advice I ever received was from the CEO of one of my first employers who became an impactful mentor of mine.