@Brian GarrettLooks like your business model is fix/flip or buy/hold housing; versus developing.How far along are you on your management skill set, Team, cost estimation and finance background? 

The good thing will be to have your space rented versus a vacant space.

I have seen it where one of my investment areas has a lower quality of the tenant population versus another.

The cost differential to re-develop into a legal suite versus starting with an unfinished basement for instance are quite significant.Are you doing the renos yourself (in-house, being your own general contractor), or are you planning on getting a GC to take care of everything?

I thought that form was for cash versus accrual, but now I see it's not just for such.

I am going to assume these investors are willing to split the purchase into groups of 3-7 versus buying the entire portfolio.  

Spend the money to get things up to date such as central AC versus window shakers.

If getting a 4% rate versus a 3% rate on a condo makes or breaks the deal then you have bigger issues with the investment to begin with. 

He performs light, cosmetic renovations versus extensive renovations and then holds them long term. 

You can also look at the Fannie Mae Homestyle renovation loan which offer something very similar but has a lower PMI versus MIP/UFMIP in comparison to FHA.