@Nicole Rogers, like others, I am not entirely sure where the loan is coming into the picture to make the syndication investment.
A few points to hit: you MIGHT make more money on multifamily, or you might lose it all. Same could be said with a syndication.
But talking 4 family: 75% LTV, means you are buying a 4plex for $100k. In many cities (thinking MSA populations of over 1mm), a $100k purchase price fourplex is going to be in a VERY rough area. And of course, rural markets have fewer potential renters to draw from, so could be hard to keep occupied. Secondly, a $100k property could very well come with a significant amount of deferred maintenance, and labor and materials are both expensive and harder to come by.
A syndication has its own risks too, but the point being: I looked at a $400k fourplex last weekend. I would have been lucky to stabilize at an 8% cash on cash return, self managing, and knowingly under reserving capex. If I hired a manager, I would be down to 5-6%, while still taking capex risk. So the point being, I think with how hot the market is these days, and how risky a $100k property is in my market, I would feel more confident in the syndication, assuming this is an experienced syndicator with a strong track record and buying in strong markets and submarkets.
While I consider myself in the "growth phase" as Bryan mentions it. In my decade of owning rentals, I have realized that there is a lot of risk in owning small scale rentals directly. At the end of the day, your wealth grows by transacting, not by holding.
