He's not a RE investor, but he has about $1M in his Roth.He's getting a bit nervous about having so much in equities, but doesn't have an appetite for becoming a landlord. 

In a broad reply to your post - this decision will ultimately be driven by your risk appetite, so there is no right or wrong here necessarily.

Don’t ask them as soon as they pick up if they’ll do that; build a relationship with the 2-3 banks that seem to have more appetite for your type of loan and then tell them exactly what you are looking for  I work with a local bank that lends me 70% LTV of the appraisal value.

I recommend contacting at least three lenders to get an idea what the market rate and appetite is for your loan.Agree on terms.

During the last recession, none of my lenders had an appetite for commercial multi-family anymore,  no matter how good the buyer's credit profile or how large the DP.  

One thing I would consider is that when an industry has very few barriers to entry, there is at least a potential for a lot of competition, price suppression, and degradation of the industry's integrity due to low-skilled entrants.  

@David Lucas Depends on your appetite for risk.

This is leading to vacancy in the Class A market that could trickle down and suppress rents in over classes.

My sophisticated emotional acumen provides me with explicit insight on my clients needs and wants, and my insatiable appetite for all things Music City keeps my finger on the pulse of our expanding urban core.

I would recommend to maybe reach out to "Memphis Invest", they are a large turnkey operator down there that would have an appetite for that sort of deal.