There is no way living in Los Angeles with a wife and 2 young kids that I can reasonably afford a loan using a 50% DTI, unless I project my income to rise sharply going forward (which I will not bank on).  

I always try to borrow 100% of the capital for my projects however, that doesn't mean my mortgage is 100% of the ARV. 

Does this builder even have any relevant references for a project of this size?

Numbers like occupancy rates, loan defaults, etc. all remain quite favorable when compared to those of SFHs during a recession.On top of that, if you work with a good syndicator, they'll only bring you deals that will perform (albeit not to projections) in a down market.

We are experienced and located in Southern California, so we could remotely manage the project and come up every few weeks.Referrals to experienced general contractors & subs in the area would be greatly appreciated!

I'm a Senior Project Manager for a local architectural firm and have been in the profession for the last 17 years. 

Hi Vincent - If you're eager to get started with multiple projects right off the bat, it would be wise to look into borrowing in order to minimize your capital contributions.

One day, I just decided to take the plunge, as long as there was nothing massively wrong with the asset I was buying.

Keep us updated on how the rehab goes, would love to keep up on your project.

Is it uncommon to have your ARV be appraised in such a way that you can refinance out and get reimbursed 100% of funds put into the project?