Help Analyzing a potential development in Colorado

[Tony Rinaldi]

Hi all

A very good friend of mine is planning to develop a 10 unit apartment complex in Costilla County, CO. He lives in California and I live in NY. His dad's lived there for over 20 years and knows the neighborhood and players very well and actually owns the land outright. Below link is the financial summary. He's estimated to need $150K down and asked a potential investor (me) to come up with (33% or $50K) but is only willing to give up 25% equity in ownership since he is doing all of the work for the development and is only looking for a passive investor. I buy in to the strategy and like the deal but need help analyzing if its fair or I should ask for more. The construction loan and term is 6.5% for 5 years but we can refi after development is stabilized (1 year) to a 4.5% 30 year which makes the returns much more attractive. Thanks in advance.

The Fort Apartments Development