The best part I think is the lease is with the organization , not the individual residents. 

In regards to renting by the room (house hacking a sfh), this strategy would typically bring more rent than just renting out the entire house to an individual.For example, median rent for a 4bd/2ba house might be $1850 but if you rent it by the room (individual lease for each tenant, each tenant pays you separately) you might be able to get $500/room or $2000 for the entire house.  

Most require individual lines and shut offs per unit so many people go with RUBS instead. 

Some are individual, LLCs, retirement accounts, money market accounts, etc.

Separating electrical will be a different process and cost than separating heating where you might need to run separate natural gas lines and purchase individual furnaces.

Since you posted this in the BRRRR forum this is the formula I use to determine the bottom of my range:75% of ARV - Closing Costs of Refinance - Cost of remodel - Closing Costs of Purchase - Carrying Costs - Buffer for Negotiating + Expected cash flow for 8 monthsI add 8 months of expected cash flow because it makes sense to me to view an individual BRRRR deal through the lens of a 1-year period.

Furthermore, where the economic benefits to the individual participants are not derivative of their co-ownership, but rather come from their joint relationship toward a common goal, the co-ownership arrangement will be characterized as a partnership (or other business entity) for federal tax purposes.

Also, my criteria starting out was newer than 1980s vintage just because of the likelihood of running into some issues on older properties but then again 1970s isn't that bad. 

They have retained counsel individually in an attempt to negotiate the drafting and adoption of an Operating Agreement, AFTER making an initial investment in the company. 

Current debt against them is ~$2.8mm via individual recourse investment property mortgages.