Higher returns means some combination of higher risk, effort or barrier to entry.

It is the combination of all cash plus lack of transparency and due diligence allowed to the investor that would worry me.Hope that helps.

It sounds like you’re setting up for a solid multifam portfolio—between you and your dad, the combined entitlements give you a lot of flexibility.

Sounds like their combined income likely beats your other tenants.Your gut is probably your best bet and you need to go with it. 

For example, I mention that every adult must pay a $30 application fee, pass my credit/criminal background, make a combined income of 3x the rent, and whether or not the property accepts pets.

I don't love the idea of having prepayment fees and a mortgage on my free and clear property but if I do a combination of things I would be able to make an above garage apartment at house 3 for 15k-20k that rents out for $1100-$1300.

Quote from @Otis Clayton: Quote from @Jake Baker: @Otis ClaytonWe typically fund with a combination of Hard Money and Private Money. 

Or in your case, maybe even change classes of property and use what's known as a consolidation exchange to combine the sales into a larger asset like a multi-family or commercial property.

However, poor operations, poor financial assumptions, poor finance structure, or a combination thereof can quickly turn a great deal on paper from hero to zero.

The labor forces used are rarely licensed and insured, are the bottom of the bottom and paired with the cheapest materials... a losing combination.