Does anyone know a lender willing to lend on 40k with a day out of foreclousre up to 50%LTV with a low 500 credit score?

After 2 years you can apply for a “Rent consideration” (I think that’s what they called it) as long as you still live there and that may allow you to increase rents by more than the annual allowance (probably designed for unit that are very low rents).

Using a HELOC or home equity loan on your personal home could be a good option, especially if you can secure a low interest rate and manageable terms.

I’ve reviewed a number of theses DST’s across numerous asset classes  and there performance /returns are generally fairly low and unimpressive. 

I have seen this range from as low as $100 up to $300.Do I need to pay anything before sitting at the closing table?

Lots are just drawn to the low purchase prices, and buy based solely on price. 

If you want to work with multiple agents, those agents know there's a very low chance of ever earning a dime, so they won't waste their time.Agents do much more than find property.

They keep rent low, give gifts and homemade cookies for Christmas, make upgrades whenever the tenant requests,  accept all the late rent excuses, etc.The truth is, your tenant is not your friend.

In some areas with low water cost the expense of splitting may not be worth it.

A few notes on your comment to this aged post thread to shed some additional light since you don't know much about us...Aloha Capital has funded over 3,000 loans since 2015 on nearly 1 billion of residential investment properties and to date has ~ 0.4% default rate.