Weeks later, it was communicated to us that the underwriter wouldn’t accept the ones signed by only one of us – legally binding for LLCs – and required we send amended copies of leases signed by both of us.

When I have a situation like this, I give them a written notice to accept the property in its current condition or get out.

Therefore they can sit back and accept say $5000/month on a multi whereas me buying it, now I need full rent amount which is closer to $6800/month.

How much is an acceptable fee for doing this? 

Thanks Dennis, I think you're right that planning for a more conservative return would be a good idea.I re-ran my numbers at an even more conservative level:Lower ARV: $800,000Lower income levels (I'm assuming it will take a couple years to get up to full potential income, but giving myself 3 years was a conservative estimate):Year 1: 50k (NOI $1,000)Year 2: 80k (NOI $31,000)Year 3: 100k (NOI $51,000)My ROI numbers come out to:1% (year 1) 46% (year 2) 76% (year 3)This scenario seems like an acceptable risk to me, when the upside seems far more profitable.

And in my opinion both have their pros and cons and neither is superior to the other (and that's why I have both in my portfolio).Passive investments can be structured in virtually any way and usually they pass on the exact same tax benefits as direct (at least from the ones that I consider to be "acceptable").

Quote from @Michael Smythe: Besides MANY self-labeled "gurus" exaggerating their success, many of them just supply readily available info.If you're too busy to find the info and are willing to pay for it, no problem as you accept their time vs money solution.REGARDING S8 GURU ISSUES SPECIFICALLYMost of them don't share all the facts about how Section 8 actually works.They claim you can get HIGHER rent from S8 tenants vs private-paying tenants.Why would the government allow our tax dollars to be spent this way?

We're starting to see the fallout from this - borrowers cant exit deals without taking a loss but are refusing to accept this.SC seems to be doing OK at the moment, but Louisiana is seeing price declines.

Is there any sort of requirements for the student to be accepted into the program or does the 8K make you automatically accepted? 

Weeks later, it was communicated to us that the underwriter wouldn’t accept the ones signed by only one of us – legally binding for LLCs – and required we send amended copies of leases signed by both of us.