With those costs a new build with the purpose of selling is likely not worth it. 

The $200k financing would serve as a purpose to be a downpayment, or do you want the $200k to be the top limit of the investment?

Comparing this to oil or timber rights is comparing apples to hand grenades. 

We always make different exceptions for long term tenants due to what is considered normal wear and tear from a one year tenant compared to a 5 year, but cleaning isn't typically something we make exceptions for. 

I know you mentioned other units are listed comparably but asking price is not the same as rented price.

I just don't understand their purpose and why they are repeatedly doing this to people. 

What is the purpose of the two million low-interest loan to Seminar Solution LLC?

If it's a long-term play, the potential savings on PMI with a conventional loan could be significant.Have you compared rates for both options?

Compare other rentals with a similar size, location and bedroom count to get an estimate of what the rent would be while you're living there.

I wrote the above for informational purposes.