So they think this is a big discount compared to Class-A MF properties trading at ~3% direct caps, when in reality the property has reached the end of it's life, and they need to slice that asking price in half.

See if you qualify, see how many people they've assisted over the past year, have them tell you the realities of your local market, and see what suggestions they have for helping you use the program if it is viable for you.

This bias skews our perception of reality.

I am brand new to the real estate industry and I want to know how I can make this possibility into a reality. so what better place to ask than bigger pockets?!  

So by the time reality set in.

The reality is that if a PM places a tenant that is sour, the PM still has no expense. 

You need to learn how others have structured and copy their proven systems.Let me slap you with a little reality check.

Always a real tough situation.... have to balance compassion and understanding with the reality of running a business.

Admittedly it is a fear factor rather than reality. 

In the absence of that being a reality, my view is to raise it gradually to get it to a more livable wage.I take a similar view on STRs.