I'd really vet the developer, their past projects, talk to prior partners (GP & LP) to see how prior development deals worked out and how the communication was, etc.

I occasionally get requests to manage commercial and love to have a referral source. 

That means learning how to vet a manager.

We’re developers managing our own portfolio and don’t have any outside investors.

Gross Margin is an important calculation for developers/builders.Gross Margin = Gross Profit / RevenueWe shoot for a 20% gross margin on our New Construction HomesReal #’s:Home Sales Price: $374KClosing Cost: $18,700Cost of Construction: $258KLand Cost: $30KGross Profit = $67K$67K/$374K = 17.9% Gross MarginCame slightly short of our goal of 20%Homes Values and Build Costs are constantly fluctuatingI wish we had a crystal ball

Building small units in small counts is expensive development.  

If you’re looking for steady rental demand and manageable property prices, it’s worth considering.Best of luck with your search!

Too many people are sleeping on this.Kentucky Economic Development has many site ready properties in smaller areas that are ripe for rentals. 

Tagged as a developer, surely, you'd want there to be more development projects.

Experienced developers, could you tell me how the process/financing works?