In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI.  

Or rental demand could be poor leading to higher than norm vacancies.

These losses depend on the layout and geometry of the system (ductwork, piping, etc) and the insulation used, the ambient temperature that these ducts/pipes are traveling through, the temperature of the air or water/glycol mix etc...  

Monthly payments at that still add a squeeze in trying not to become “house poor” so I’d rather have a little more leverage up front and just be able to pay it down quickly 

There are too many good markets to invest in poor markets.   

someone with poor credit and very little money is not going to be able to rehab the home to a point that they can refinance it.. they will quit before that happens or just live in it under those conditions..

Under bidding, poor quality, not following timelines - those will all kill your project.

Very poor RE selling market here. 60 homes on market.

I've seen great properties get run into the ground by poor operators. 

To avoid going through the same poor experience, keep reading.Even if someone gives you a referral here, do NOT make the mistake of assuming that the PMC will meet your expectations, just because they met the expectations of the referral source.In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!