The 203k is NOT your normal rehab project because of the nuances, unique paperwork, timelines, payment structure, etc. that normal contractors struggle with. 

@Bruce Lynn, while I am guessing because I don't know "most" large multifamily, I would say it is very much manager dependent and likely to become more common place as many syndicators are struggling to make their mortgage payments.Ownership companies are still run by people, and people that don't have enough money to pay their bills will start prioritizing who to pay based on the perceived risks of not paying.As for taking over any outstanding bills, that is one of many issues of the common LLC transfer.  

If you struggled to answer my question, let's draw an analogy.

There were struggles cleaning up books, bumping up rents, chasing down tenants, building processes, etc.

I've seen a lot of investors find good properties, but then they struggle to find a quality manager and the deal turns sour.

Tragically, my circumstances took an unexpected turn when my father passed away, leaving me struggling to cover his funeral expenses and putting me behind on rent.

@Eli Joffe the most general but applicable advice in your situation is to start focusing on high cash-flow properties with low equity growth potential in the beginning in order to have the cash to boot strap.Once you have a few properties under your belt, then start phasing in nicer homes which tend to be lower cash-flow with higher equity growth potentialThe former helps you boot-strap using more labor and the latter helps build wealth more passively and with less tenant struggles.

.: Thanks for the insights @Robert Ellis.I'm totally aligned with your views on lowest cost/risk and the idea of basing equity on the valuation of each partners contributions.I'm struggling with how to apportion equity (if at all) based on how my partner is proposing to do the construction financing; my land is collateral for the loan (I retain title vs transferring it or selling it to the partnership), the land is in second position at payout, I'm co-signing the loan, and my partner is not making an initial capital contribution.   

Basically a restricted unit can definitely burn out a capacitor and anytime you set a unit too low causing it to  struggle to keep up (ex. set at 69 but it never drops below 76…) will keep a unit running 24/7.

The alternative was them struggling to pay rent on the 1st and being late.