Furthermore, as the total dollar size of the project increases it becomes increasingly difficult to bake the necessary soft costs and inflated budgetary numbers into the loan (whether it is rehab or new construction). 

I am planning on getting a degree in interior design to help increase my success and potential in house flipping.

So to start this is a master lease and the terms are as follows.Rent paid to seller monthly: $1,500Down payment: $40,000Option to purchase property in 5 years for $175,000Or scenario 2 (whichever seller picks)Option to purchase property in 10 years for $125,000A little about the propertyLocation: Rural area so some rent increases and appreciation but nothing drastic4 units with rents at marketCondition: 4/10 livable but outdated and some deferred maintenanceMonthly NOI: $1,861Market Cap Rate: 9%Is this a good deal or would I be screwing myself?

That’s assuming simple interest at 8.5%.

Many years later when we had a much larger case study, we found a huge increase in delinquency and evictions with our residents who had credit scores between 560-580.

They think they're missing something because they don't believe it could be as simple as it appears. 

You are just increasing all your transactional and closing costs doing it that way. 

Depending on where you are looking to buy location can help increase cash flow. 

Landlord friendly (eviction, rent increase, etc.)4).

Could be as simple as multiple people bidding for rental are you willing to pay xxx amount more.