First investment in multifam via syndicator

[Melody T.]

Things have been slow trying to build my real estate portfolio through single family and small multi fam. I'm looking at a lot of opportunities, but after I run the numbers, I'm not really finding decent CoC returns and cap rates, especially looking in the Cleveland area right now. My offers are getting beat by folks who have some magically optimistic pro form apparently and it's not worth jumping in for sub par returns and tenant headaches (or PM headaches). As such, I'm thinking about trying to scale via syndication.

I know a principal at a syndication with over $2B in assets. They're very well established so I feel pretty comfortable with the sponsor and their track record. The property I'm considering investing in is a multifamily facility, ~600 units with 95% occupancy, and the play is to increase value by renovating the units and holding for 4-5 years. They've made $3M of equity available. The investor Cash on Cash yield is projected to be 5.9% in Yr 1, 7.1% Yr 2, 8.06% Yr 3, and 9.89% Yr 4. This includes distributions and in year 4, distributions + sale proceeds. Annual average yield 7.67%. IRR 10.78% and equity multiple 1.46x

I would like to learn more about what due diligence I should be doing, what questions to ask, and anything I would need in place to transact (attorney, costs associated etc.) Thanks in advance.