Some are run extremely lean (i.e. they keep HOA fees low-ish) but they do moderately frequent "special assessments".  

You're typically trading cap-rate (in the commercial multifamily space I'd say 4-caps are moderately common) because you believe the market will continue to improve, prices will rise, rents will rise, etc.  

Of course that is IF rates remain in the moderate range.

I am mostly interested in 4 plexs that are in need of minimal to moderate rehab, the current state of the property will probably scare most everyone else away while lowering the asking price at the same time.

Do I give it to the guy with a deal and a dream, or to an experienced person with a moderate deal.  

Your financier is well connected and this isn't a substantial risk assuming you go after a moderately priced property. 

You could simply take your equity, left after paying off all debts and park it in a moderately aggressive investment fund and still earn 8% to 10% returns (over the long term).

These loans are partially backed by the government and can help veterans and low-to-moderate income families afford homes.

The returns on most moderately aggressive funds would be far greater than any cash flow you could earn investing in your area.

According to the agent I'm working with buyers in this area are moderate income who need to buy FHA, with younger families who value a fresh look even if it is not new, 3-4 bedrooms, off street parking and fenced yard.