You would only have a 100 to 165 basis point spread between debt and cap rate for possible return before any rental increases and mortgage paydown.Hard to make that deal work as a syndicator unless the investors are taking almost nothing for yield.In Illinois you can lose your shirt on retail.

To negotiate, I used the inspection report as a basis for what needed to be fixed.

My schedule is a little different from most jobs working a 2 week on 2 week off basis.

And it's the gain or loss when you sell that determines tax liability.Gain or loss is (generally) determined by subtracting your cost basis (what you paid for the home) by the sale price (what you receive for selling the home).

Where are you finding lower basis deals?

It may impact their basis for the preferred return.

If the market changed 5 years from now and cap rates are 100 basis points higher, how will your investors feel?

After 5 years from the conversion the amount you converted is considered "Basis" and can be withdrawn for any reason without tax or penalties. 

Homes must be registered with the city and county municipalities, insurance agents bet the home for true value and isurability ...if What you state is true .. no one could invest remotely .. in fact .. people from different continents would fail .. travel on a consistent basis is not always possible .. yet fixing mistakes will save more on the back end if homework is done ..

In addition to this, I always enjoy helping newer investors navigate the funding side of things and do so on a daily basis with my company.