Usually less expensive legal. 506(c) - Unlimited number of accredited investors, no unaccredited/sophisticated investors.

We have noticed that some of our sophisticated investors who have blocks of property have been breaking them out into packages and selling.

I can easily source 500-1.5m in cash from sophisticated investors and accredited investors I know directly.

@Jonathan Styer- Accredited Investor term is used by the SEC and refers to investors who are sophisticated and have a reduced need of protection provided by regulations. 

Each of those must be tested and evaluated.So trust but verify.Underwriting is partially a science but also an art - the art comes from local knowledge experience and intuition.Or larger properties in your area, is payroll typically $1200 a unit per year or $1400 a unit per year?

If it's to learn something sophisticated, then maybe.

Sure, I spent thousands of dollars getting an education for trading stocks, purchased every book I could find, wrote a book myself, developed a sophisticate software for analysis and spend $30,000+ going to classes taught by so-called experts who are only liars and they don't have a clue regarding how to invest wisely and safely.

Bureau expected to report a rise of over 600,000 non-farm payroll jobs in June, and the unemployment rate is forecasted to tick down from 5.8% to 5.6%Weekly Changes:10-year Treasuries:    Rose     005 bpsDow Jones Avg:          Rose 1,000 pointsNASDAQ:                    Rose    350 pointsCalendar:Tuesday, June 29:  Consumer ConfidenceThursday, July 1:   ISM ManufacturingFriday, July 2:       EmploymentFor further information, comments, and questions:Lloyd Segal

It will come with a higher expense ratio, a lot more turnover, more management intense, a lot of make ready costs, and require most staff/payroll.

The answer changes as they grow in sophistications.