PM me or her at Kaley Roberts Best of luck in your translation from the military.

That's could easily translate into $7 - $8K tax bill given a less than a year hold period and state and federal dings. 

Locally speaking, in the Milwaukee suburbs we have about 2 months worth of inventory in the lower priced segements, which translates to almost nothing avaialble. 

What is their current rent and how would that translate to a mortgage?

This site is mostly dedicated to single family real estate however, you may be able to find some people in the landlord/ tenant forum that have PM experience for either hotels or multi family properties that could translate to your issues. 

Assuming 20% down payments and some cash needed for closing and fixup costs will likely translate into something like $4 million in assets.$900K in assets, purchased with 20% down plus another 5% for closing costs and fixup would require a cash investment around $225,000. 

The loans are considered commercial which translates to non owner occupied investment property, this could be a SFR rental.

Commercial facilities, such as office buildings, factories, warehouses, or other facilities that do not provide goods or services directly to the public are only subject to the ADA's requirements for new construction and alterations.

As to your points on interest and combining it with what @Alina Trigub stated, 7% might not be that far fetched if you consider what PMI will do to the payment if PMI is translated as interest as well. 

Secondly, many condo associations are run poorly and have little in the way of financial reserves, so unexpected repairs, maintenance, or upgrades could translate into surprise special assessments that will gobble up your profits.Flipping off-market properties is a sound strategy, but it requires serious marketing effort.