-can you set some benchmark costs when you go in, to throw some lower costs out.

J B.Give Roxy at Benchmark insurance a call.

Just remember when you're running FHA numbers with the 3.5% minimum down payment, that there is an upfront 1.75% PMI charge that can be baked into the loan, and there is an ongoing 1.25% PMI charge (1.25% per year of the original loan amount) that will be in your mortgage payment.One nice thing about the FHA loan is that it will be assumable in the future for a new buyer, and the low rate you're locking in today could be a very strong selling point for the property down the road.I'd benchmark your new lender's rate against amerisave.com.

My benchmarks are 20% COC--have never heard of SFHs around the Midwest producing 40%+ COC.

The rate should be around 4.625% with ZERO points on 30-year fixed rate (I have a feeling you transposed the 15 and 30 year quotes in your post above).You can look at this post of a similar issue, but please benchmark what you are hearing to amerisave.com's online quote.

I understand that it varies by markets, but as markets continue to get more saturated and more competitive, is it fair to say that the 70% rule might be an outdated, over-generalized benchmark?

Knowing what you can expect and knowing who to call will greatly change the amount of reserves you need to keep to feel comfortable.That being said, 6 mos of PITI + HOA would be an excellent benchmark starting out.

The deal that I kept the seller in is my benchmark bad deal. 

I know that each deal has its unique characteristics, but I would like to know some reasonable benchmarks in terms of what are the usual economic terms offered to private investors in multifamily RE transactions.Interest rate - What is the interest rate range that is usually offered?

There could be newer information out there now since this was from 2007 but I would definitely check twice because the PA supreme court is the one that ruled in favor of the end buyer.http://lawyersusaonline.com/benchmarks/2011/12/06/must-home-sellers-disclose-murdersuicide/