In this case the current financials on the property aren't great(rents well below market value and the owners family living in several of the suites) so the lenders will likely not provide the funding based on poor NOI.  

I am just defending the poor “Covid syndicators” who are doing things right. 

Or rental demand could be poor leading to higher than norm vacancies.

They do have a review from a returning guest that mentions the quality went down when comparing their first stay to their second stay.

Monthly payments at that still add a squeeze in trying not to become “house poor” so I’d rather have a little more leverage up front and just be able to pay it down quickly 

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

Never pay for work that hasn’t been done.3.Verify Work Regularly: Have an objective third party inspect the quality of the work weekly and provide updates.

There are too many good markets to invest in poor markets.   

You can then take some of the profits and buy some quality RE, which will probably just break even for the first years, but that's not why we buy real estate anyway..

someone with poor credit and very little money is not going to be able to rehab the home to a point that they can refinance it.. they will quit before that happens or just live in it under those conditions..