However for me I want nice performing notes ( why would I concisely make an investment into a problem asset) and I want realistic returns..

Here’s what I recommend:Cash Investments:No Debt, No Stress: With cash, you avoid third-party control and loan vetting, giving you full control of returns.Equity Builders: Partnering with builders often reduces your property entry cost by up to 20% below market value.Consistent 10% Returns: With an all-cash approach, achieving 10% ROI is realistic and efficient.Financing Strategy:If cash isn’t feasible, consider a balanced financing model:40-50% Down Payment: Keep leverage manageable while maximizing returns.Lower Debt Exposure: A conservative loan-to-value ratio (LTV) reduces risks and keeps returns stable.Work with a Builder: Collaboration with builders can lower acquisition costs and increase your ROI.Key Takeaways:If possible, prioritize cash for simplicity, control, and consistent returns.Financing can work well with a disciplined approach to debt and a strong underwriting process.Partnering with builders offers opportunities to reduce costs and enhance your portfolio’s profitability. 

Today's math is 10-15% down, and re-house hack every 3-7 years.In italics, this is a fine goal but be realistic.

Thorough vetting is absolutely essential in private lending to mitigate risks and protect your investment.Here are a few additional tips to enhance your due diligence process-Assess Their Exit Strategy: Whether it’s a flip, rental refi, or sale, make sure their exit strategy is realistic and aligns with market conditions.

Then there is a sort of echo chamber where social media spreads this idea to more and more people and somehow it becomes realistic. 

Some type of house hacking/str scenario—- idk if Orange county or SD is even realistic to consider house hacking w what above equity can pull, given such high price of homes.

I think if you realistically have enough deal flow of good properties, flipping is a faster way to a huge bank account, since a good flip should be between 30-50% return on investment every 4-6 months, if you are doing it all cash.  

This initial negative position can consume years of the small real cash flow (when using realistic expenses).   

The market just has so little volume that it's hard to tell what's realistic or not in the near-term. 

So making them condos would be a realistic possibility if I wanted to go that route, I think.