I would only focus on cap rates for larger assets.

The larger players last I checked were between 10-12%.

Maybe it's a personal choice, or it depends on which state you're conducting real estate business.Originally posted by @Anthony Wick:I’d probably shorten the letter a bit.

Or you could slowly consolidate the properties together to purchase a larger property.

However, the specifics can vary by lender.DSCR's are designed to accommodate various investment scenarios, so they can be quite flexible with terms and will typically have slightly higher interest rates compared to traditional loans and might require a larger down payment. 

Often times these larger projects look rough, even if there shouldn't be a value problem (should as-is appraise at PP or higher) at purchase price.

At a technical level you have two paths, either 1) combining the bottom and ground floor units into a larger unit as you suggested above or 2) create a third legal unit.

Most “Gurus”, authors, advisors and experienced real estate investors preach obtaining seller “carry back” financing for property buyers in order to (1) obtain financing when they don’t qualify for a 3rd party loan (2) obtain financing when the property doesn’t qualify for financing and or (3) extend the “buying power” of their capital contribution (down payment) to purchase a larger more expensive property by having the seller provide a subordinated mortgage loan.That’s all and good, but why should the seller agree to finance the purchase of his property, instead of getting CASH for his equity?

The primary reason a lot of people move on to bigger deals (80 units plus), is that it's possible to own larger properties in markets that make economic sense but may be far from where you live. 80 Units seems to be the target so you can hire your own full-time property manager and maintenance person, versus relying on local property managers to manage smaller multi-family properties on your behalf.

Pete are both solid choices with lots of potential.