HOA dues kill the returns in most places other than about 5 developments I know about in DFW area. 

Your price point makes the task even more challenging.

I've been an on again, off again listener of the BP podcast for many years as I've developed personally and professionally.

Hi BP Community, I have been working in commercial development for almost a decade, primarily in acquisitions/underwriting/market research.

If you can develop a relationship with a community bank or credit union they are more likely to be flexible on their lending requirements.

You'll appreciate the speed at which you develop by going outside your comfort zone.

It forces you to work "on your business" instead of "in your business" because you aren't able to just drive by to fix something small, you're forced to develop systems to help you run things. 

Alternatively, I could put the investment in a more passive K1 offering (development) that's projected to grow 30% in 2 or 3 years. 

There may be some local factors (nearby construction development or major change) influencing the owner to sell at a discount OR perhaps the owner has not been keeping up with capital improvements and the tenant base as suffered and therefore actual collections of rent have been impacted.

It would need to be a ground up development however and I personally haven't done that before.