However there were a small handful of tax attorneys in the room and they opined as how they could see that method having some merit in a perfect storm of scenarios, judges, plaintiffs and defendants.  

Perfect timing, but we had kept in touch with said lender every month and the "checking in" paid off.  

If you're a truck driver you may need $40K/yr.Once full time you can do a lot more than you can part time.And then maybe your expenses are $50K/yr and you'd be perfectly happy to stop growing your investments once they reach $10K/mo, $120K/yr.

So what you're seeing is perfectly normal (even with single family homes).To answer your question...I really don't think it would be worth the added return to try and rent rooms out individually.  

Everything was working perfectly until the 13th month when the buyer suddenly stopped making his monthly payments and abandoned the property.

This is called 'Information Brokering' and is perfectly legal.

A 203k would be perfect for this property but I don't know of any banks who offer 203k on investment properties.I do really want this property because of it's location.

I am sorry we are not perfect but on a daily basis i am referring new clients to clients of 5 years plus that are happy. 

During that trip, I identified the perfect property and was under contract to purchase before flying home.

I can't ever remember a used house I bought that was perfect.