Putting more money down vs. higher leverage vs. more investors

[Account Closed]

I'm looking to invest in a MF property in Richmond, VA and have 2 other JV investors I'm working with. For simplicity, we have $30,000 down and will buy a $100,000 property. Property is a Class B property and the goal is to do minor rehab work. I have a few friends that also may be interested in the deal, but only want to put in $1000 or $5000 (the "Extra Cash").

Question: Should I take the Extra Cash?   

Pros: - I use the Extra Cash to reduce my downpayment or use it for rehab work.  I get more investors and knowledge in the deal. 

Con: - I have less leverage now, and have less of a return.   

- The return for the larger investors goes down because their piece of the pie is smaller

- It creates more paperwork, more accounting, and too many cooks in the kitchen.  To be fair, the smaller investors will have no management power other than voting on "Major Decisions" like selling the property or approving a budget, but that could be hassle. 

Thank you!

[Tom V.]

It seems like you are taking on an enormous amount of fiduciary responsibility and baloney for $1-5K slices.