It seems like the equity may be better suited in another investment (syndication, bond, stocks) than a property without negative cash flow. 

And if you're a newb still cutting your teeth, it may be 5x as much drain on your time, attention and energy as a single home.

Further, he can go online to any one of an increasing number of crowd funding sites offering investment in both secured and unsecured loans at 6% to 36%, again depending on risk factors, etc.I have found that the "competition" for the private loan seeker is not the interest rate paid by banks, its the return provided by other at risk investments, such as equities, bonds, derivatives, REITs, etc.  

Would this money have been better invested using low-down payment loans, BRRRRs, US bonds, or the S&P 500?

Also primarily if its a small negative cash flow - what is the alternative use of that money (cash out) - i.e. can you come out ahead overall if you re-invest that in govt bonds paying 4.5%?

(head scratch)NAHB recommends panel (complete with breakers, grounding/bonding) every 25-40 years depending on location, brand etc.All screw shell fuse panels, pushmatic (bulldogs) FPE Stab-Lok, Square D XO and Any Zinsco should be replaced Immediately.

Stocks, bonds, CDs anything else and I have to pay the full 200k. 

Go onto the brokerage company of your choice and research it will be under bonds for agency debt. 

Investors have the freedom to choose their own investment vehicles, such as stocks: Gold, Real Estate, Debt, stocks, bonds, ETF’s, and mutual funds, allowing them to tailor their portfolios to align with their risk tolerance and financial goals.Cost Savings: Self-directed investors often enjoy lower fees compared to managed accounts.

So if loan rates are based on the Moody's Corporate Bond Yield, there should be a long term arbitrage between loan rates and annualized IUL returns.