To help my brother convert his traditional house into a fourplex and become a vital part of an up-and-coming nonprofit organization.

Pay off the outstanding balance and the seller what they're owed (both stated in Purchase and Sale Agreement for everyone's safety).Obviously some of this is not traditional, such as getting something under contract before a debt is paid, but Real Estate Investing is usually more open to creative solutions. 

For Hard money terms, I know a few lenders, around 10-12% If you are you looking for traditional loan terms, many local banks may give you 80%LTV as long as it's more than 4 units, and the the deal fits requirements.

Question 2#Is it wrong to weigh in the personal pros and cons of a property compared with the business pros and cons?

Your COC ROI is directly in line with my numbers based on traditional financing but this option was never brought to my attention in my banking discussions today.

Compare the cost of the dorm to the 3.5% down payment of an FHA loan, to see if the acquisition could actually save them money in the short term.

My first purchase I used a partner to obtain the bank financing as well as the down payment so I was zero out of pocket on my first 4 or 5 deals (all of which with purchase prices well under $200k.There are many ways to skin a cat so if you don’t qualify for the traditional bank loan, get creative but in doing so, be very careful in using OPM.

Unreal... its so advanced compared to the send 50$ to claim your $5000000000 from Nigeria....

Have you looked the current rents and compared them with the area rents with for similar properties? 

We bought a nearby property and moved out.We're now trying to sell the property, but with close to $100k in non-house improvements (well, electric service, house pad, barn/workshop, fencing, etc.) it's a tough deal for a traditional lender to process.