Having a vision of the outcome and overlook the work that must be done to achieve it.

Multifamily properties can benefit from forced appreciation, where you increase value through renovations and improved management, potentially achieving 5% to 7% appreciation annually, especially if the rental market remains robust.

What are you attempting to achieve?

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment? 

My goal is to achieve financial freedom through house hacking and long-term rental properties.

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.

This would be in central Jersey which is still a hot market as a result of record low inventory.I am planning to do this strategy since I want to put low money down (10%) on a construction loan and achieve a quick build to lower my holding fees. 

Quote from @Zach Edelman: 80/20 might be tough, but I think you can definitely achieve 75%.

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment?

If you can take down the entitlements without LP  capital or with bridge type debt and equity that exits before the development phase,  you stand to be in the best negotiation place when it comes to the development phase capital partners.Not saying you can't achieve your post hurdle 70/30 but it is going to be much easier to do so if you have a compelling story to tell.