Multifamily investment first timer

[Kaushik Sarkar]

I am a single family investor looking to make a first multifamily investment in a friend's company where he is the lead GP. Need advice if this is worth looking into.

The property has been negotiated at a 20% discount and 7.6% tax adjusted cap rate. 70% LTV with Freddic Mac loan. Agency loan processing at 5.5% fixed interest rate. Class A1 investor - 8% annual return and total return of 1.8-2X