However, it seems like the file was never legally closed. 

The property that caught my eye initially seemed promising on Zillow, labeled as 4 bedrooms and 4 baths – a rare find in my area.

While this would seem to eliminate your opportunity to add improvements, a reverse improvement exchange still allows that.

It seems like a no brainer to me if I’m correct.

Based on my research (including RDPD), it seems that minimizing the initial down payment and using available cash for further investments is what's advised (+ pull more money from refinance when the value increases later).

Investors seem to be saying they’re not being sufficiently compensated for risk at current multifamily prices and income levels.

Your approach of buying and holding in anticipation of future growth seems strategic. 

Getting a 4-5 bedroom seems the best way to go right now.

Textedly and Eztext seem to allow it, but they are very cumbersome.

The lowest minimum loan amount I'm seeing right now is around $60K for some DSCR lenders, which seems to be in your ball park.