Probably not the return shareholders are hoping for, since that's only about a $3/share return, which is a pretty paltry 15% over a 10-year holding period, based on current stock price of about $20/share--so if there was no operating income, this wouldn't be a great stock investment.There is definitely some risk baked into their model, which is why they have to pay bondholders a better rate of return than they would get investing in a Treasury Note where your principal is guaranteed by the US Government, or putting the money into CDs where it is guaranteed by FDIC.

I’ve bougth almost exlcusively 2-10 year old SFR, in b+ neighborhoods without flat roofs, with garages.  

For instance, one PM I spoke to has the following fees:50% of first month's rent to initialize tenant (+$50 just to draw up the lease)8%/month rents collected$150 flat for a renewalThis comes in at about 12.5% of gross rents in year one of a tenant's lease, and then probably closer to 9% in every year they renew.

And is it a simple flat fee?

If it turns out to be OK then, yes, you can lower the ceiling down to make it flat

Keep in mind there is still a max loan amount tied to the number of legal unitsA legal 2 flat in those areas can easily be above $1 million, but with a loan limit of $700k you need to make up the difference.  

He also stated that the charge to handle the exchange is a flat fee of $850, which I didn't think was too bad.

The key is to 'normalize' the data and put in either standardized flat file format or bulk import to a DB with MySQL query capability.

I'm looking at a 2 unit deal in Chicago (2 flat).

Other than asking them flat out "Do you work with investors?"