The guy gave me a receipt and all that and is a pretty well respected individual, but he told me it would be permanently fixed.

@Daniel MarkhamYou would certainly not be the first (or 50th or 100th) person to do individual leases per room -- otherwise known as house hacking -- in Colorado Springs. 

You didn't mention if your group is buying as an LLC or as 5 individual borrowers. 

Whether you are purchasing as an individual or under an entity, you may qualify for a DSCR loan.  

@Justin G.You will receive a K-1 from the syndication reporting your share of income/losses.If the K-1 is received prior to April 15th, you have the opportunity to file a timely filed return.if the K-1 is expected after April 15th, you will be required to file an extension for your individual return.Depending on where the K-1 invests and the amount of your investment, you may be expected/required to file in multiple states.You may have some tax decisions to make during the period when the syndication plans to exit(normally 5 to 7 years).

Something to do with the ratio of the average income of the individuals living there to the current growth of the population.

If the house is 200k how is the debt to income reflected with each individual partner?

This will be an owner occupied unit with the rest of the rooms on the top floors individually rented out.

And how might it look different for a well established company vs a small team vs an individual investor?

I would meet with them in person individually and explain what is going on etc.