With a simple Cash on Cash Return, you would get a incorrect answer.With the IRR, you would get the correct answer.

This one has an incorrect definition of accredited investor on their website and admits the ownership of the syndicator also owns the construction company that does their rehabs.

I'm sorry @Ryan Twomey, I wanted to ignore this but.... it just seems so egregious when in context of your significant self-promotion along with such a wildly bizarre and totally incorrect: "....emerging markets such as Minneapolis, MN...". 

However, title can be “clouded” many ways, including heirs who never registered their rightful interest (usually when someone dies without a will), spouses never formally divorced, common law marriage situations, children born out of wedlock, incorrect survey information, Sheriff and tax sales misidentifying multiple parcel situations, partial property rights transferred such as remainder estates, tax liens unrecorded, incorrect county identification due to changing county lines as when a river redirects, and of course plain old error in the property description copied onto the recorded warranty deed.  

What if the foundation was poured incorrectly and its a $50k fix.

Often they make attempts but may use an incorrect address etc.

They run their numbers on incorrect assumptions and get a big surprise the next year when property taxes get uncapped and move much higher than they expected. 

I would say based on my experience, someone correct me if I'm wrong, that the industry average goes as follows: *  Easy: $20 per sqft*  Needs work: $30 per sqft*  Full gut: $50 per sqft INCORRECT, its impossible to answer.

This is most likely exactly what is going on - the 10 cap is rarely ever hit because the metrics, hassle and complications of qualifying often becomes too much (which also ticks up towards worse overall terms which can include fees) - the math makes a lot of people to move towards Non-QM/DSCR right about this exact point (I generally always point to "property number 5" which looks like you situation to a tee) But that math is incorrect.

@Daniel Duku The main things you want to look for is verifying the zoning via Philadelphia Atlas, https://atlas.phila.gov/, public records in philly are often incorrect.