FHA loans on 4plexes are a great way to leverage little cash, but you have to move in, so that might not be feasible with your family.

There are many smaller projects that just can't feasibly work for a contractor without a higher percent down.  

To clarify, the model you described is expensive, but feasible.  

Most of our new construction these days is in what MOST would consider A-B parts of town, "Dunwoody, Roswell, North Fulton, Briarcliff"But 2-3 years ago before new construction was feasible we were mostly flipping in what most would consider C-D hoods, Gresham Park, East Atlanta, South Edgewood.I'm currently looking to build up my rental portfolio in the D parts of town that have potential to transition to B-C in the next 15-20 years.Each part of town has it's own price point and game you can play. 

The turnkey company has incentive to command the highest rent feasibly possible because it makes the CAPs look better.

Along those lines setting terms that are not feasible for the circumstances as to balloon requirements.3.

Otherwise, 35% down payment would get the lender to overlook certain underwriting criteria and make this deal very feasible from that point of view.

Screw them...Not that I think it's feasible given the ridiculous TARP spending we've incurred, but it would be nice to see "pay as you go" implemented for future budgets...

In considering it, it seems that if I had a housekeeping service that I trusted to clean and monitor for damages and a solid handyman, then I could feasibly manage it on my own without having to go down there every week.

I don't' think anyone is returning back to those mega office building in sf downtown because alot of people are moving out 1-2 hours and it's not feasible to commute anymore.