What is a reasonable return to offer an investor?

[Phil Goodwin]

I own 18 residential units and I am looking to raise some capital to buy more residential rental properties. Ideally, I would like to buy about $2,000,000 worth of real estate, which in the Philadelphia suburbs can get you anywhere from 15-25 units. At 25% LTV, I would need to come up with approximately $500,000. For this example, I am omitting closing costs. I am comfortable injecting $100,000 of the $500,000. I would need to raise the remaining $400,000. What percentage ROI would my investor expect? I was thinking 10% return on his investment seemed like a decent figure. If the property can generate a 10% return on his $400,000, or $40,000, is it reasonable to propose a 50/50 split on the distributions? I might be aiming high that a 20 unit building will throw off $80,000 after expenses and debt service, but for the sake of argument let's assume it does.