Aren't they losing money?

Funny, IIRC, I believe seeing this exact property as I've been browsing their site for quite some time now.

Also, without even looking at the plans a 7 unit building will likely have flawed floor plans and/ or an inefficient layout unless its an irregular site.

Most of these folks don't want to lose their voucher.Additional issue, when rent is too high, it slows down leasing. 

Now investors, especially the newbies, are chasing returns by going after higher risk investments - many NOT really understanding the true risks.Many more investors will be losing money and choosing to liquidate real estate - which will be buying opportunities for the better prepared investors.

I'd rather lose 100 bucks a month in a class A area than make 200 in a class D. 

If it's just a money grab and there is no desire to associate with the aforementioned, you will most likely be on the losing end and feel very negative about the program.

GC in my area cost 10% of the total and I would say that is worth it for what they provide, but if you have the knowledge and willingness to be on the phone with subs (and spend a lot of time on site) you could save that by DIYing it.

However, you can't sell something unstable, with circular references, requiring human override, etc.But, if you stabilized it, the model loses efficiency. 

Did I lose my bet?