You can use the same formula, but a REI is more "mobile".Second mistake, is you are not comparing apples to apples in the overall comparison here. 

Do units need cosmetic face lifts? 

In our area, the largest employer Apple did not even have layoffs.

Yes, the tenants are back in the building, after the cease order was lifted.

Can I get the occupancy clause lifted for an FHA loan or should I try to sell?

many threads on them.. they from what has been said require a 3k deposit up front with no gurantee of funding.so its not no money down.. plus I think you have to front rehab and get reimbursed so you need money for that so once you start adding this all up.. you may want to talk to local HML s as well. just to compare the real apples to apples.the biggest complaint I have heard is people pay the 3k and can never find a deal good enough to get through their underwriting and just lose the money.. they do for the 3k though send you some how to books and tapes I think but you can buy that stuff on E bay for 50 bucks.

Now you talk about passive.. no tenants no toilets no heavy lifting.. most of these folks though that have large note portfolios sold their fixed asset to TRULY get passive income.. and get out of the day to day..  

I don't want to muddy the thread with a debate between SFH and MFH but compare apples to apples if you're going to make the comparison.

But in the middle of all of the bad apples there are some legitimate and honest wholesalers out there.Good luck brother :)

Because it's so simple to get into, we get some bad apples (probably a lot of bad apples).