I'll bail on the paperwork when the chicken wings appear.

On the appraisal, the 4th unit may just appear as an "accessory". 

The proposed cash flow appears to be good but I think that the numbers seem to good to be true.  

Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meetSet up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alertsCheck out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/If you wish to tag someone in the conversation on the forum, type @ followed by their name and then select the name of that person which should appear below the comments box.

Your photos give the appearance that the place is not well-cared for or cleaned and that a hurricane hit the kitchen.

This is not an appearance issue, it's a durability and maintainability issue.

A decision would have to be made as to whether the investors would own fractionalized interests in the note (each investor or his entity would appear on the mortgage or trust deed, and note as the lender with his percentage ownership reflecting his capital contribution.  

I'm not sure how much more bogus they could appear.

Although the site appears to be geared toward voucher tenants, many of the people who are contacting me do not have vouchers.  

Unfinished basements get moist but with proper air flow, mold/mildew has never appeared.