Housing costs and rents are through the roof while incomes have mostly remained stagnant.

if the roof is halfway through its useful life, then not much to do there. 

Does it have material defects such as a roof, foundation, heating system issue etc?

As mentioned by others, you cannot personally guaranty the loan and the limited recourse aspect navigates that requirement.

I got a very good price on the building (about $25k per door), but it was a ton of work as in addition to tenant issues, there was TONS of physical distress (foundation repairs, sewer line and water line repairs, electrical upgrades, new roof, and apartment renovations needed for all units). 

This rule is part of the Securities Act of 1933, which was established to provide more freedom for businesses to raise capital while still protecting investors.Here are the key aspects of Regulation D, Rule 506(c):Rule 506(c) Filing:Allows issuers to broadly solicit and generally advertise an offering, provided that all purchasers in the offering are accredited investors.Requires issuers to take reasonable steps to verify that the purchasers of the securities are accredited investors.Issuers must still file a "Form D" with the SEC after they first sell their securities.The rule effectively lifts the prohibition on general solicitation and advertising for certain investment offerings, allowing companies to reach a broader audience when seeking investment.Accredited Investor Definition:To become "accredited," an investor must meet certain defined criteria regarding income, net worth, professional experience, or size of the entity (if the investor is an entity rather than an individual).

Check local regulations on maximum number of unrelated people living under 0ne roof. 

The leverage aspect is my business, the fundamentals of the business is via the DSCR loan so it must qualify and I don't tinker to qualify.Every market I am turning to is like this, and every bit market I've been in is like this.

Put a new commercial roof and did mold abatement and full demo of everything inside so i have ~80k into it.  

It was an office building owned by a somewhat shaky business, but did have numerous long term roof leases for wireless providers.