Below are the basic criteria I would need:1) enough money to comfortabley live for about 8 to 12 months doing nothing at all.2) enough money IN ADDITION to number 1 and access to enough credit to persue enough and sufficiently large deals to generate at least what I NEED and enough more to conduct more deals and acquire rentals along the way.3) I would need to have completed about 3, maybe 4 deals successfuly and with sufficient profit to prove to myself it is possible and that I can do it.4) Not necessary, but ideally I would already have 3 or 4 rental propeties with good cash flow just to add some (relative) stability.

Clearly you had sufficient "intent" (you moved into the property, after all).

FHA loans allow lower credit scores, and are a good option to buy multi-unit properties with 3.5% down.  3-4 units will need to be self sufficient - 75% of the rent for all units must cover the PITI payment. 

Also, people with sufficient income tend to move to newer areas on the outskirts.

I know that in order to be sophisticated you can either be accredited or "have sufficient knowledge and experience in financial and business matters". 

The less partners the better for a joint venture.As long as your investor friends have an established relationship with you prior to the offering, and have  "sufficient knowledge and experience in financial and business matters to be capable of evaluating the merits and risks of the prospective investment" then the 506(b) should work.

Also, people with sufficient funds will leave these areas and the area will go into further decline.Climate - Properties in areas with hard freezes and excessive moisture will tend to require more maintenance than in milder and dryer climates.

The horse was sufficiently beaten last time. 

You would not come across this issue on FHA, but on 3-4 units you would encounter the self-sufficiency test.  

.✅ You are backing into a potential price that can deliver your desired projected returns sufficient for the level of risk the deal presents.What would you add to this 7-step process to underwrite a commercial multifamily property?