I met with an operator that has three 4 unit properties (fully rented) this morning.

I finally found a good one, he was small 2 person operator...so he didnt have a lot of overhead to "bloat" the price of the project.

We all must start somewhere and must prove our ability to operate in the space.

You mentioned on hand reserves and that is an additional amount that is also raised upfront. 3 months of projected operating expenses and debt payments is typical for stable properties.

You need to look at the HOA bylaws/operating arrangement and I expect they would be available for any listing. 

They operate like a broker (lots of outlets, which means more programs than a bank and often lower rates), but they are the direct lender (which makes them a bit easier to work with and more predictable/reliable compared to a broker). 

@Gary CliseleNote funds are an excellent way for an investor to invest in notes, in a truly passive way, while leveraging the experience, expertise, and relationships of the fund operator.

We operate a PM business in Columbus, Oh.

Rental Property CalculatorResultFor the 20 Years InvestedReturn (IRR):15.76% per yearTotal Profit when Sold:$508,194.80Cash on Cash Return:668.68%Capitalization Rate:6.53%Total Rental Income:$702,846.61Total Mortgage Payments:$333,762.50Total Expenses:$164,736.39Total Net Operating Income:$538,110.22 First Year Income and ExpenseMonthlyAnnualIncome:$2,800.00$33,600.00Mortgage Pay:$1,390.68$16,688.12Vacancy (5%):$140.00$1,680.00Property Tax:$375.00$4,500.00Total Insurance:$75.58$907.00Maintenance Cost:$100.00$1,200.00Other Cost:$41.67$500.00Cash Flow:$677.07$8,124.88Net Operating Income (NOI):$2,067.75$24,813.00

I *DO NOT* have any experience with discussing distressed properties, so maybe take my 2 cents with multiple grains of salt...I DO, however, have experience with cold calling and door knocking for insurance sales, and I am a 10 year veteran 911 operator who has experience with communicating delicately!