Also as a side note, presumably your realtor filled in "residential" in the contract where you said it reads "or which prohibit the following use or activity: Residential"  You can actually expend on that one word next time.

Someone who is trying to do a BRRRR would need to have an expendable income or enough savings to cover the payments to the lender, insurance, taxes, etc. multiplied by the expected number of months until the rehab is finished, correct? 

What the owners do not consider is the PM company having to expend time and money to collect when tenants are late.

That way the borrower has expended their ability to get conventional financing (and they get cheap money), they expended the effort needed to get the cheap money and when they can't get it anymore or don't want to go through the hassle (pay stubs, tax returns, K1's, business tax returns etc...), they have a higher appreciation for the low hassle approach to commercial lending (even though it costs more).Hope that helpsStephanie 

If nothing were to change for me financially, that would result in me having all my living expenses paid (based on current rental cash flow) plus an additional $2K of expendable income, which I would probably invest in the stock market at that point. 

I highly caution expending all of your own cash, then trying to figure it out. 

If the property starts below market, forcing the bank to expend resources to negotiate the price up, they will be less likely to turn around and let the price fall.

Also, a qualified CPA will need to review ALL documentation, tax returns, cap expend, and anything else you can think of.I'm not saying you shouldn't pursue here but I I have folks I know who buy portfolios this size whenever they are available and I am aware of one in the PA area(some spread out of there as well) that has eerily similar numbers to what you are showing(basically identical). 

Larger expending cities.

As a courtesy to you, I have already expended significant time assisting you in attempting to resolve this issue so it is only fair that I am paid for work moving forward.