We are looking for smaller properties ranging from 25- under 100 units, c/b class, that offer the opportunity to increase value through Capex, management optimization and rebranding!

It's important to understand the difference, and I'd recommend sticking with the REIT with depreciation advantages.The Tax Cut and Jobs Act (TCJA) includes a 199A deduction and applies to certain income from pass-through entities (including REIT dividends) and allows individuals to take the 20% deduction against REIT dividend distributions that yields an effective tax rate of 29.6% or 37% (80% for upper bracket filers).

Will say that is zero for now but it is something to consider and add into your expenses as you think things through.  

I had another investor who was a first timer and he had just enough money for his first deal and through his project he lost at least 15 days over 4 draws. 

You should skim through some of my online content about this (I make videos for NYC househackers) on my pages - just google ClosedByMo. 

As long as they have gone through your screening process the same way and you feel comfortable, you should be fine in either case.

However, TIC is a real way people can buy in these neighborhoods at 1/2 or 1/3 the normal entry priceAre any Lender open to working through the full strategy of investing with the remodeler and then being prepared to finance the individual home buyers as well?

Default rates through 2024, barring a catastrophic collapse in valuations, will stay low since most homes have positive equity.

A lot of places are rented through real estate companies, and are not on Airbnb or Vrbo. 

If you do it through rentals, you have to figure out what your cash-flow per door is.If you are able to get $200 a door, and you are talking about $7,000 after tax, you would need 35 doors.If your $7,000 is gross, and it is $5,000 Net, you would need 25 doors.This is assuming the rental income would be sheltered by depreciation.