Gotcha that makes a lot of sense. 

Lastly, the price point is still very cheap here in the sense that you can still find investment deals that hit the 1% rule for 120-180k and in great residential location!

Marcus & Millichap bullishly forecasts continued increase in rents due to stronger demand and higher incomes.

This makes sense.

We can go higher if the numbers make sense. 

There is no requirement to use them as mentors for doing the rehab projects as described in the horror story above, but they do their own underwriting so they will be investing themselves to assure the deal makes sense and is successful to assure they get their payments and interest. 

It makes sense for your new build but you'll have leverage something (fixed rate) to get out of that loan. 

With time rents will go up and you'll start cashflowing in year 2 or 3, and year 5 to 10 when interest drops you can lower your payment and cashflow much stronger.

It all makes sense!

But there's no sense in complaining because it's not going to change.