And here in PA, the new buying/renting season starts the first day the temp hits 60 degrees, sometime in FEB or MAR.  It

Because I am partnering with them instead of simply using them as a private lender, they are getting equity in the deal and splitting the profits with me rather than charging a premium on the interest payment.Im not really worried about the strategy, it is solid with low risk.

However my back end split is better.. since I sourced it ran it and had to front all costs to get to the profits and returns to investors are about what your talking about.

In Britain it's typically split between buyer and seller, 1-7% total, average 4% but with total transaction costs factored in it's actually more expensive there.

The standing plan is to put in mini splits in each unit once the existing furnace finally dies.  

Quote from @John O'Leary: Are you just renting by the room or are you using Pad Split? 

You can also split the difference by looking at the historic energy usage for the property and setting that as a utility 'cap.'

R&D is like split testing, trial and error is "I'll be damned to spend the time investing in knowledge so let's just hope we survive the guessing". 

Also, rather than taking a large amount of money and investing into one single directly owned property, I can split it up into much smaller chunks across many different passive investments.

If you can't find an existing multifamily to pencil out try to identify something that you could add an ADU to or a larger single family home you can split into more than one unit using ADU rules.