Another point about Cap Rates, they are also a measure of ability to raise the price of the property for exit. 

Some lenders I know will do for less but the goal would be for you to raise rents on non-performing units, which there probably is.You can also buy the portfolio, fix up individual buildings then sell off the ones you don't want.

If so, I would raise rent to $1,175.

Raising your NOI is not going to do much (if anything) to increase the current market value of your property. 

These are readily resolved but certainly raises the bar.

You guessed it: the financing.I'm pursuing buy-and-hold, SFH.I don't have much of my own $$ to throw into the pot, so here's what I'm thinking:- Figure out about what a house would cost (I'm told to expect ~$200K - $250k)- Assume a traditional loan, and needing 25% down- So I'll need to raise ~$62,000 for the down payment- I approach friends and family, network with potential investors to raise those funds- Bank supplies the loan for the remaining ~$180,000Something like that.Should I speak with a real estate attorney before approaching those potential investors?

Could I raise the issue that they're being unfair in enforcing this rule to not let me rent when it's obvious they aren't enforcing other rules? 

Please see you tax professional.......if they can't find them, please see a BETTER tax professional........Essentially, by structuring this way, you have raised your tax basis in the property as well. 

Worse case I pay down my debt, raise my score, and then go for a HML in 6-9 months.

Just raise your nightly rate a bit.