It sounds like the idea is good for more of a SFR, or a 1-4 unit rehab but my concern from a lender's perspective is the needed experience in the more 10+ unit space to give "normal" (80% leverage) on a deal like this. 

We’ve gone through the process of doing an application and submitting the required documents, and our lender is saying our combined income is too low, even with a significant down payment. 

I have to prove who I am to my lender, not my agent. 

If you can join a private athletic or country club those are good places to meet real estate people

OK, I would urge you to be very, very careful here...Certain operating expenses are paid monthly from lender escrow, so it's easy to assume that any costs not paid this way are somehow "optional."

I rather raise the capital from private partners and pay them a nice return on their capital.

I need to find an asset based lender that is willing to base financing on the income of the property.

I don't know if any hard money lenders would be up for that sort of thing though. 

Debt is not taxable income, so there should be no taxes due.I'm no lender, but you will need an asset-based loan like DSCR (debt service coverage ratio). 

Contractor was slow, so I started my own team Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?