The house looks great, but I have no desire to stay in a desert.Other people may love this idea for some reason. 

I'm in the position to apply(depending on lender DTI requirement) for conventional financing through the builder at <6% interest rate in this current market.

If the HOA required you to obtain their approval, did you hire an attorney? 

The DSCR product is a non-QM loan and will not be sold on the secondary market to Freddie or Fannie, so there are lenders that may will not require a seasoning period. 

Be prepared to act fast, as desirable properties are still moving quickly.For Sellers: With rising median sale prices and strong demand, you can confidently list your property knowing that buyers are willing to meet your asking prices.

Assuming a required rate of return of 5% (comparable to high-yield savings or a CD), the deal would need to yield a total CoC return of 10% (since everything is split 50/50).I'm stuck because while playing around with numbers, achieving this return seems improbable if not unrealistic.

I guess I’d like to learn more about investing in bigger commercial deals….. what are the requirements?

Get permits if required.  

The $78k value per unit and total value of $780,000 are well over many lenders' minimum requirements. 

I have seen so many say a "furnace is going out" and think it's requires full replacement when after checking and testing, it was JUST a blower motor, and $400 later, vhullah, runs amazing.