Thanks, Jaysen,I understand it's not going to work out exactly as I've written it, but I would like some more specific guidance per my question in the body.

in the long run, the numbers do seem to work out if you refinance, on a monthly basis you would actually have cash flow. 

We own a real estate brokerage so we have access to the feeds but you may be able to work out a deal with an agent in your area.

Is there any downside to them if this deal doesn't work out?

Check the comps for rentals in that area if everyone that has that price point of rent is paying utilities it may not work out.

One of my concerns is if the value add does not work out or the deal starts to slide due to a recession or other reason, the institutional partner could decide to sell without letting the other limited partners have a say (say via a vote) and thereby force us to sell at a depressed valuation since it would be unlikely we would have the ability to raise sufficient equity to buyout the institutional partner at that time.

I know this doesn't always work out, but so far so good!

There are also "reserve" requirements that pop up when you have multiple financed properties, which require a certain amount in your accounts AFTER closing,  that only get more intense the more properties you have.  

It stands to reason that with more and more small businesses springing up that many don't want to or can't work out of their house!

Real estate ownership is capital intensive and when a tenant has mortgages on their balance sheet it can really be a drag on expansion plans.