Another issue that I don't find the solution in the syndication literature is how do you finance the interest paid to the investors when there is zero income during the construction.

I think >50% chance US will be in mild recession in 6-10 months, as Germany/UK/Canada/New Zealand/Ireland/Finland already in recession due to they have 3-5 yr variable/adjustable mortgages and corporates also do short term debt, so their central bank Hikes hit them faster than US.

They’re currently paying way below market rent and are on a fixed income(social security).

Here is my understanding... the underwriter was a hard money lender who required the house to be put into an LLC initially so that he could use the estimated "rental" income as the way to get approved for the loan.

For flipping my accountant recommended an S-Corp (flipping income is handled differently and so is insurance).

It probably doesn't include income from the 5th or 6th unit if it's supposed to be a loan for 4 units right?

Maybe they mean your net, net income? 

Could the rental income justify the price?

I offer them a lump sum and monthly income.  

I am starting from ground zero, with no prior background or capital to invest, but with a strong desire to create passive income for my family.I currently work as a middle school teacher in California, and while I love my profession, I have a strong desire to explore avenues that could potentially provide financial stability and additional income streams.