Target yield for private investors on residential rentals?

[Lee Campbell]

Next quarter I am going to start raising money for a private fund for residential rentals. I am trying to figure out how much of the return I should pay my investors. If I can make a 10-12% return on my rentals on an annual basis is giving my investors 8% enough? I am thinking of this from a sales perspective as a means to help people diversify their portfolio using real estate to supplement their other investments. 

I have also thought about setting up a 5-year balloon on this fund to give both myself and my investors a clear end date. Should I look at sharing the profits of the sale with them or should I keep their return at 8% and I get the rest?