I, like many of my colleagues tend to opt for the more conservative approach when analyzing tax legislation/litigation.

The underwriting is actually conservative.

Yes, you can start - just soak up info and take it pretty conservative to start. 

I have evaluated it to be able to cash flow as a STR with the lender special rate, even with a conservative 48% occupancy. 

Hopefully the Sponsor is being very conservative in their returns and this isn't just a tight spread offering in a macro MF environment that is looking precarious. 

My initial analysis suggests a conservative offer in the range of $3.2M to $3.35M could be justified, factoring in current market cap rates and the property's upside potential.I'd appreciate any insights on:1.

If you're going cash and being conservative I think you'll be fine.

Be sure to be conservative on your projections and stress test the property to see what worst case scenario would look like. 

To be ultra-conservative put a 50% LTV FNMA loan on each of these, putting $500K in your pocket.  

We have 20 year 4.5% loans 75% ltv but they are based on appraisals and I often find the appraising to be ridiculously conservative.