I think you need to get a better understanding of what things cost in the area and if things are priced too high, you need to seek more quotes.

They will pay high prices to meet needs that are not income producing - they are shopping for a different product that is provided from the same stock that our income properties come from.2. having deep enough knowledge of the neighborhoods to allow us to recognize a good deal takes a lot of time.

I may try to broach the subject of a 5% equity stake, but they seemed averse to it when we were initially discussing terms at a high level.

It’s going to be highly dependent on your situation, assets, etc.

Almost any $65k property in a Midwest city is going to be Class D or need $20k+ in rehab.Class D means you'll only get the worst tenants, who have a high rate of eviction for nonpayment AND they trash the place on their way out.You MAY get lucky and get a S8 tenant for your Class D rental, but most of them will want to live in a better neighborhood.

I have been finding tired landlords who carry back for me, particularly on the barrier island in our high priced touristy market. 

It’s a tough market out here in New Jersey both with this high market and the high interest rate right now.   

Also, no contract or high upfront fee.

All of the product is nearly identical in target market reach (Class A, high rent).

The rents are high enough so they can cashflow, even with the 7%-8% rates we are currently seeing.