@Daniel Dietz the Fannie/Freddie loans you are referring to are designed for 1-4 unit structures. 

Atop the criteria you have, a more empirical factor you may want to consider is distance. 

I need to be factoring in?   

By getting a targeted list, you can increase your chances of reaching people who share motivating factors - and have houses you want to buy.This is a good place to outsource.

and like you said you can always renegotiate to meet an under appraisal.And of course in my world it allowed us to 1031 out which, you might guess, is a subject ever so close to my heart :)@Cara Lonsdale as long as you don't get greedy and build in realistic appreciation factors you can even do this buying at retail. 

I am not well versed with this section of the tax code, but advise caution and due diligence if you decide to proceed with your strategy.The BRRR strategy is designed for rental properties.   

A lot of intangibles need to be factored in, maybe you did that...?   

Another factor to consider....think about the next landlord.......anything you can do to have an official record of their "deadbeat" status may very well help the next guy in line by giving them a heads up before they even rent to them.

Though he has more experience with rehabbing this is not something you need to factor in to your answers as it isn't something that will influence or affect our agreement financially or at all.

Those "Fannie Mae" guidelines are the "allowables" set by Fannie, and only mean what Fannie will reimburse the servicer for, not what the actual normal costs are and even then, it's only when the servicer is using that designated counsel approved by Fannie.