The issue is there are too many of these “gurus” on social media that are preaching S8 to everyone and how great it is.

a good deal for a SFH flip would be the buyer being ALL IN at absolute max 80% of the ARV (including the PP, renovations, assignment fee, closing costs), but a lot of investors would say it has to be max 75%, 70%, maybe even 65%. that said, shoot for 65%, and know your renovation costs. i've used $65/sqft for a gut reno, and until proven otherwise i'm assuming it's a gut job, BUT that PPSF is not always accurate, sometimes there are unique issues with the property that would drive that number way up. it gives you a place to start, though. 

Also discuss with the contractor the time expected for the project if its small, mid or large and if it needs permits and how long would it take for permitting and all, also payment terms, make sure you go with payment terms that are fair to you and the contractor (so many terms but most common is monthly based on completed work with an upfront for materials) and ALWAYS keep the last payment until project is closed (retainage) and you do your walkthrough and if there's any issues you write them down and provide the contractor with (punch list to release the retainer once they're corrected or fixed). read about how to deal with contractors and always ask for references but it really depends on how big the job is, personally I wouldn't spend too much time doing due diligence on small jobs such as door latches or shelving rather on additions, layout change and other scopes.Good luck!

Plus there are several restaurants right in the lake and multiple marinas.Just make sure you buy on good water because it can fluctuate more than Keowee, but this has never been an issue for us.

However, the issue for me is after doing my numbers he'd still need to be way lower than $175k.

Is this scenario common in Multifamily real estate? 

If you are doing it yourself this isn't a bit issue. 

One month ago I made an inspection and tenant stated that there are no drain issues.

But I'd sell the rentals one at a time as there are issues, vacancies, capex, etc.

While a mini storage, apartment building or some other type may sound great they all come with their own issues and stresses.