I believe he was carrying the weight of the rent anyway, she is a waitress.

@Ginny DensonHard money lenders are going to look at everything you mentioned but each lender will weight that information differently. 

I am part owner at CT Property Management LLC and what I can tell you is that some months we are simply an "insurance policy" for our investors (meaning barely any issues to take care of, but are there to take care of whatever comes up) while other months we are worth our weight in gold (things break, tenants need things, some sort of maintenance needs to be scheduled / etc.). 

For those not in the business, the beams in the concrete footing adds rigidity to the slab, allowing it to support the weight of the house. 

Those guys are worth their weight in gold.

If "owner financing" is your version of "Starbucks" in my example and making you tilt your neighborhood assessment, rehab assessment, give that overaggressive Zestimate a little too much weight, etc. you'd better find a way to level things out.  

If I were you, I'd really set 2-3 sit downs with investors in LA who've done this exact type of project, weight the pros and cons and then make a calculated decision on how to proceed. 

Is it because so much extra liability (weight rooms, pools, etc) as well as the additional cost (much more landscaping, pool cleaning, general area upkeep)?

Inspections are worth their weight in gold.

I don't put as much weight on the Cap Rate.