Sponsors make money in the form of a co-investment and in fees, carry, etc.  

So for now, I have a co-op in a neighborhood I want to live in and invest long distance (Buffalo). 

You don't NEED to deal with inspections and the town (you may need to for a CO depending on the town) BUT you better really know what you're doing because you could be on the hook to lose a lot of money if you don't.Your seller wants minimum hassle on her end.

Hey BP,I'm interested in starting a co-living community catered towards young professionals in Los Angeles (essentially dorm style housing with a nice coworking space), but am having a hard time untangling all the legal stuff. 

I've historically preferred the university students as they typically come with a co-signer for add security for myself.

The lowest I have heard of being accepts is 40 % which is 2.5 times rent but if you go any lower then that they can't afford it because they can't pay the rest of their bills.The exception is college student rentals where we use a co-signer without income qualification criteria.

But again you'll have to get your lender to lend money on a building without a CO.3. 

Do you write one lease and have one person sign along with a co-signer?

Effectively, he will serve as a co-signer on non-recourse financing.

If not would getting a co signer help?