Most of the loan modifications that sponsors are touting almost assure this outcome as well.

Pref just means dilution to common investor and one is giving very high risk to new investor while returning little bit of money.the real solution for this is not capital call to investor , in other country the solution is debt restructuring aka let’s say loan modification to another 4 years with the same rate schedule.Capital call is sort of punishing small people by GP and lender. 

I later was able to do a rate modification to lower amount.

They are supposed to be more likely to have repair parts for in the future where the big-name units are obsoleted necessitating system replacement when a part could fix the problem if it was available.

This necessitates expanding slower than most people would like but it helps to prevent your investments from collapsing.

The modification and market time is , you guessed it, to be able to negotiate a discount from the original listing price. 

Don't allow modifications or repairs to be done by your tenants.

@Jim Adrian has given you some ideas to use in assembling your acceptance and rejection criteria; identify those that seem like they fit the demographics of the population that lives near your rental, write down the ones you wish to use (you can even make modifications if you see something too lenient or too strict), and use that to guide the decision regarding applicants.

In any case if the first is sufficiently large as a percentage of market value you risk holding a junk” second.these deals rarely come off without the buyer needing some kind of modification from the seller, even if it’s just an extension of time.  

Here are the Fannie Mae guidelines for legally non-conforming properties:If the Property's characteristics are legally non-conforming, you must:ensure the Borrower executes the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275);confirm whether, if fully or partially destroyed, the Property's Improvements can be fully rebuilt to the pre-casualty condition per current laws, zoning requirements, and building codes; and if the Property’s Improvements cannot be fully rebuilt to the pre-casualty condition, evaluate if the as-rebuilt Property will support the Mortgage Loan at the current Tier, and document your analysis in the Transaction Approval Memo.To assess the Borrower's ability to rebuild Improvements on a non-conforming Property to a level that will support the Mortgage Loan at the current Tier, you should consider: conducting a threshold analysis to determine the resulting actual amortizing DSCR if the reconstructed Improvements cannot be rebuilt as-is per current law; the likelihood of a casualty event (e.g., wind, earthquake, fire, flood, mine subsidence, etc.); the percentage of damage to the Improvements at which the Property’s jurisdiction will require the Property be rebuilt to current zoning and land use requirements (i.e., the destruction threshold); which Property characteristics the destruction threshold percentage applies to, such as market value, assessed value, replacement cost, or unit count; for Properties with multiple buildings, if the destruction threshold percentage applies to each building, or all buildings as a whole; the replacement cost to rebuild per current requirements for zoning, and land use; the Property’s continued marketability, and economic viability; the amount and type of Borrower-maintained insurance coverage required per Part II, Chapter 5: Property and Liability Insurance, Section 501.02C: Ordinance or Law Insurance; insurance loss proceeds payout, compared to increased rebuilding costs, including from building code changes, Americans with Disabilities Act compliance, and the municipality's local zoning requirements (e.g., green compliance for new buildings, etc.); the sufficiency of estimated insurance proceeds from ordinance or law insurance and other coverages to repay the Mortgage Loan in the event of partial or full casualty, or condemnation; and for a Tier 3 or Tier 4 Mortgage Loan, if requiring execution of the Limited Payment Guaranty (Form 6020.LPG) would mitigate the risk of the as-rebuilt Property not supporting a Tier 2 Mortgage Loan.