Had a woman making $3k/mo gross wanting a $1400 unit (down from $1680) and thought I was unreasonable declining her for not meeting my 3x requirement.

There were also hurdles with being in the middle of a rehab when Covid hit and government shutdowns were ordered.

The city and utility providers were the only real hurdle.

What's the difference between a preferred return and an IRR hurdle?

I also wanted to clarify that when you say 70/30 after NOI, keep in mind that the mortgage payment, capital expenses, and adequate reserves have to be paid prior to free distributable cash-flow. 6% pref is on the low side of market but not unreasonable by any means. 

The seller may be unreasonable, as many feel their home is worth more than the market will provide.

The main hurdle here is going to be cost and seeing if the ROI works out.

Two members will be the managing members and also providing capital, and one member will strictly be providing capital.We would like to put a waterfall structure in place for any money distributions, including preferential return on cash yield, and an IRR hurdle for liquidity events, etc. and we would like all this to be clearly spelled out in the operating agreement. 

Philly is a very block-by-block city so sticking to 0.1 miles for comps is a good rule to stick to, but it's not unreasonable to use 0.15 as well.

That said, each strategy has its own hurdles and each investor must decide which hurdles they are willing to jump over to get to the finish line.