- 9% preferred is good, better than the standard 8%-60/40 split after 16% IRR is not good, there are deals with better splits- Generic value add play, invest in units....raise rents....sell at higher price due to increase NOI- I dont like the short 2 year hold but some would love it- I think the fees are high, but not unreasonable.   

No, its not unreasonable for you to have a conversation with a lender and for them to give you some general quotes based on your projected numbers.

If you can put hurdles and deadlines for the project to meet, the developer can spend his design and permitting money, but if he doesn't start construction you can terminate the JV.

Usually the next hurdle is off street parking, around here 2 off street parking per unit is common though some places are requiring 2.5 or 3 per unit.Next is code issues including fire separation;  the 2 units need to be separated with a fire barrier, usually they will accept 5/8 or 3/4 inch drywall; or double layer of 1/2 drywall. 

Curious about any hurdles of taking over existing tenants.Appreciate the help in advance!

If you get past the legal hurdles, let me know.

In my case at least, there are permitted uses in a zone which are listed, but if the existing use of the property isn't the use you plan on even though it is permitted, then it goes to the Planning Board, a lower hurdle. 

The purchase of a primary residence is the easiest (less hurdles, best rates, lowest down payments) and makes the most sense in many cases. 

  (10-20yr) I don't want to be unreasonable on the valuation but in our small market (100,000 people) it would seem like a high cap rate makes sense. 

Waterfall structures, with hurdles to be met by the Sponsor, are nice to see for more investor/Sponsor alignment.