This is pretty clean.Scenario 2:  Your partner has owned the house for 15 years and has been taking accelerated depreciation, so the book value of the house is very low. 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

Would a low enough sales price make all of my concerns go away?

@Bryce Nurding Rates are close to a 2 year low.

Required good credit, adequate reserves, full doc commercial loan with a personal guarantee.  

@Arlinda RexhoWhen considering a 32-64 unit multifamily property in Texas, focus on strong locations with population growth, proximity to amenities, and low crime rates.

More on DSCR loans in case helpful: DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Do you have an idea of the total tax credits?

Usually the numbers don't work to build in these neighborhoods, unless government tax credits, etc.Do you see the problem with your two statements:"The turnover costs could/will be high"and"How much more damage could they do?"

Quote from @Michael Daniel: Purchase price 70k currently pulling 900 rent ARV 110 - 140k, rehab about 25k @Michael Daniel That rent sounds too low for that ARV.