The cons are that the interest rates for these deals are significantly higher than the conventional mortgage loans (1-2 percent higher) which cuts into returns.Option 3) Save a larger chunk of investment cash for the down payment on a multi-family (small apartment complex) property.  

Everything seems to be much more expensive for multi family units as opposed to multi family.Also, the turnover and vacancy ratio is way higher in multi family whereas you could have the same tenant for years and years with a sfh.In a down market, selling off one sfh is fairly easy, try selling an apartment complex when nobody has cash.

What's a realistic PM cost for a complex?  

Hi everyone, I'm evaluating an opportunity to participated in a syndication for a mid-sized apartment complex as a limited partner. 

Is there any law in California that prohibits raising rent only on new tenants coming into my apartment complex? 

But given that this is happening in the hottest of hot markets, I feel there is a trend towards down side on commercial multi family projects ...And once the banks start losing money on $100 M apartment complex in Seattle or NYC, they will start to jack up RE loan interest to make up

I worked at a student apartment complex and we often saw financial aid as a main source of income for our tenants.

Complex topic that would require pages of email but your assumption is not correct.  

@Anthony Percy you are right, Baldwin and Mobile counties are very hot right now, lots of opportunity in the area from new construction to SFH, apartment complexes left and rIght etc.

My cash investment would be 10% of the down payment, a commitment to live in the complex for two years for x% asset management fee and rehab services during that time.