However, something to consider is that in midwest markets, big multi family properties tend to attract lower quality tenants.

The condo has an HOA fee of around $1,100 per month and offers the option for short-term rentals.

The current owners do not have a mortgage, and would sell it to me direct.Since the don't need the cash, I'm going to offer $50k down at a 3% interest at a 30yr rate, but buy them out and remortgage it with the bank at year 5.No money needs to go into it, i have a $100/mon HOA, ~$800/mon escrow.

Institutional private lenders operate on a larger scale with more structure and formality, offering quick and flexible funding but within a regulated framework.

Chase used to have good card offers for this. 

TIA Hey Sam, Those offers/rates are terrible.

If you ever plan to refinance the property, I would highly recommend structuring the lease as a master lease. 

If you do not wish to pay this out of pocket, you will want to include an addendum in your offer requesting the sellers pay your agents fee for you.

I'm looking to either transform single family with high Sq footage to 3-4 units.

The top markets were all high appreciation markets.