However, realistically.....most buyers are going to wait until after school lets out in most areas before they start looking to move so they don't risk moving their kids from their current school district. 

Is vacancy rate of 5% realistic?

Just so you have realistic expectations.

As for a generational lineage plan, it's best to assume at a future date you will liquidate EVERYTHING, roll it into a fund of some type be it in syndications, W.S. or what-not, and than the heirs will "manage the managers" as this is the most realistic long-term multi-gen inheritance structure.     

This is often an indication that they are selling above market valueDon't allow for your own independent property inspectionAre not realistic with their pro forma projections.Are their vacancy and maintenance projections unrealistically low?

I also hear from a lot of landlords that they aren't interested because it doesn't sound like a "Win" for them.Here is what I've found works - - - - - - - (1) Picking your target correctly Theoretically, you could rent any residential space and Arbitrage it, but realistically you need to find a place where you, a total newbie, can create enough value to begin a partnership.  

I suspect you will need to raise a little over $2M from investors to properly execute this deal.As a side note, 12 months is never going to be realistic on a full turnaround.  

You/they would need to talk to lenders about terms and figure out the monthly payment.They would need to understand what rent they realistically could get on the property, and then beyond their mortgage, insurance and taxes, plan for some maintenance from time to time, improvements, and holding costs when it is vacant.  

I make sure (1) the borrower has a 10-20% (or more) down payment of his OWN capital invested (2) I understand time value of money and use a realistic and appropriate interest rate to determine the actual value of the note I’m holding and (3) obtain a personal guarantee unless the entity purchasing the property has financial strength in its own right (4) the lien I hold is in 1st position.

Skepticism is crucial, but careful market analysis, cost management, and realistic expectations are essential.Good luck!