I will say REPS is one of the areas of the tax code where it is very costly to get wrong.

In Milwaukee, I'd need 2 exits from the attic and 50% of the space has to have at least a 7 foot height on ceilings.Two things you want to check: both requirements are correct, but on top of that the city is getting reluctant permitting 3rd units: 50% more occupants mean 50% more water and sewer and 50% more traffic and parking.The other issue is that the cost of finishing a thrid floor with proper insulation/ventilation will run about $50-60/sf and only makes sense if you can get strong rents. 

If you're looking to do a fix and flip - you'll need to come to the table with at least 10% towards the purchase price + closing costs.

What's the cost?

The below is the closing costs breakdown the lender has provided.

Get caught with your pants down on paper first, it costs less. 

If you are in the actual SubTo community, there is no way they haven't been spam calling you and grouping you so you should have access to that inside of the Facebook page or paid groups.But, seconding @John Clark, if you are new as an investor, choosing SubTo is going to cost you a lot and get you a little.

This should include down payment, closing costs, potential rehab costs, and a reserve for unexpected expenses.Market Research:Choose a Market: Decide on a market where you want to invest.

I would not get an attorney involved unless you just want to prove a point. it will probably cost you a few thousand and I am sorry but the attorneys involved  , your attorney and theirs will settle out of court. 

Property details are below.Property 1:Cash flow: -$730 / monthPrinicipal + Interest: $1,790 / monthEquity after sales costs: $110kExpected IRR of holding: 27%Property 2:Cash flow: -$200 / monthPrinicipal + Interest: $620 / monthEquity after sales costs: $20kExpected IRR of holding: 35%Property 3:Cash flow: -$310 / monthPrinicipal + Interest: $690 / monthEquity after sales costs: $45kExpected IRR of holding: 26%Property 4:Cash flow: -$500 / monthPrinicipal + Interest: $1,135 / monthEquity after sales costs: $45kExpected IRR of holding: 16%Property 5:Cash flow: -$600 / monthPrinicipal + Interest: $878 / monthEquity after sales costs: $40kExpected IRR of holding: 16%Total portfolio:Cash flow: -$2,340 / monthPrinicipal + Interest: $5,114 / monthEquity after sales costs: $260kExpected IRR of holding: 24%