The list goes on.Personally, I think rents are too low and there is not enough meat to chew on.

Sometimes, people default on their obligations, not because they bit off more than they could chew, or because they didn't prioritize responsibly (and bought a shiny object with their tax refund rather than putting it in the bank), but because of something out of their control, like an accident, or an illness.

The right equipment will chew these up in no time.

Depending on the age of the buildings, there could be significant structural, mechanical and electrical problems that could easily chew through a combined 3K per unit budget.  

If they don't restrict dog breeds, that shouldn't be your reason for rejecting dangerous breeds because that may get you in trouble down the road.There's nothing wrong with being honest and telling them you don't like certain breeds because of their behavior patterns, which could include ripping off arms, digging, chewing window sills, scratching doors, or peeing/puking inside the home. 

@Joe Alford, this isn't a "foundation issue" this is much bigger than that.Walk away, this is biting off WAY more than you can chew as a newbie. 

I tend to bite off more than I can chew but if I don't try I don't know.

Yes, after reading everyone’s comments and thinking some more, I realized that this deal would be biting off more than I could chew.

My 203k took forever, again, since my lender was inexperienced and bit off more than they can chew. 

The lower the cap rate when you're buying, the higher the risk you're in negative cashflow territory when interest rates rise (assuming of course you use leverage) or you're in negative cashflow territory when you get higher than expected operating expenses (which almost always happens even with the best operator).Even experienced operators get into trouble when they run out of money - and that happens when they bite off more than they can chew, specially when the market changes.