I’m not necessarily saying I’m a proponent of buying cash flow negative property or using this logic to justify it, it’s just curious to me why it’s so readily accepted to take money out of a paycheck for say a 401k, but not so much to put that money into a negative cash flow piece of property.

It certainly could rule out VA/FHA based on their strict criteria.  

Bottom line is make sure you study your lease very carefully as there are no “rules” when it comes to commercial leases.

Each listing platform has different rules on how the payment is distributed. 

They will ask for detailed material and maintenance costs, ARV projections, cost per sq ft... ect...Although that may all sound daunting at first, it is actually a way to refine your skills and make sure the deal is good enough to justify a hard money loan.  

 Also I’m hearing a rule of thumb is you pay a manager about one months rent to find tenants and then about 10% per month to maintain those tenants?

The upside positives are slight increase in rents, flipping electric & heat back to tenants, renting out the 8 storage units.The future rents , with increase, stays in line not to overprice..... compared to home ownership.The property is well in the 1% rule.

I'm not sure these aren't justified complaints.

Income/Credit Requirements: - General rule is that income from the applicants intending to sign the lease must (collectively) equal or exceed 3 times the rent. - Proof of adequate income (or reserves) to verify ability to pay rent on time throughout the lease term (select one or more): • Verification of employment and salary/wages. • Recent paystubs from verifiable employer • Tax return copies for self-employed applicants. • Proof of regular investment earnings, social security or other form of governmental rental supplement. • Any additional sources of income that applicant wishes to disclose (i.e. child or spousal support, trust income, financial reserves, etc…). • Any rental subsidies which you wish us to consider.

As a general rule if it's a thriving and growing school there will be demand for housing but it's a very different business model especially for undergrad vs grad students and year round.