If you paid it down, you can always lump sum some money towards WL, but is limited to the size of the contract.Dont get to think WL as investment.

But, I believe that a fee structure like this is way worse than something simple like: "Good" Property Manager Fees:- 10% of rents- 50% or $500 lease-up fee- 25% or $250 lease renewal fee- 10% GC charge on projects over $1,000 (guarantees they will get 2-3 quotes on jobs of this size).- $500 - $1,000 flat rate breakup fee, payable only in year 1.This very simple, but higher headline, fee structure better aligns incentives.

In the case of the student housing there is no dividends until refi at year 2 then a large portion of principal is returned then divideds after that.

@Spencer TillmanI agree price is way too high.1858 Rutherford is 2x size and pending for $422k and pictures show better1935 alfresco much larger and contingent $469k2126 speed is smaller but $130k lowerI know nothing of this area but my guess would be this ends up selling for around $350-$375k.

Normally I wouldn't be targeting this one, just hard to pass up the discount + 10k year in "gifts" on the seller financed portion. 

Purchase prices are quite different ($240K vs $450K)...is that due to location and size?

 - you discuss no compounding and I can see this argument for unleveraged purchases but if I use fixed financing leverage, I fix a large portion of my expense and in effect I get some compounding effect.  

Depending on the size of the down payment, we could take on a property that needs a bit of work.I have been using the BiggerPockets calculator to analyze deals though I'm having a hard time finding any that have positive cash flow in the first few years. 

Get a feel for the Size ($) of the discussion from the LLC or Non profit standpoint.

We've actually done a few this size as all single asset loans for clients who wanted a full 30 year term.