I would say it's less about comparing the deals using a financial tool and more about comparing them based on fundamentals.

Trust but verify" is one of the fundamental rules of successful RE investing.Caveat: if you have an incredible, proven, trustworthy team of boots on the ground who you've worked with for many years and through many deals, and they've never steered you wrong--in that scenario, I *might* take their word for it...but, most investors (esp. newbies) don't have that type of OOS team in-place.

Fundamentally speaking it is a phenomenal investment with numbers to die for.

There are certainly neighborhoods in Philadelphia where you can complete the BRRRR with your budget, but you are ignoring the fundamentals that make real estate a lucrative investment.

I will be the first to share I understand the value in being able to recycle capital through refinances to grow a portfolio but this should not be done at the expense of other fundamentals that are more telling of the properties current and future economic performance.

@Annwar Zahrieh There are certain transactional costs/ costs of doing business in Philadelphia to be mindful of, but I believe the fundamentals that exist in Philadelphia far outweigh this IF investing wisely.

You shouldn't be doing a wholesale transaction without knowing the fundamentals. 

@Ravi KaruturiRavi, a Project with a $10M “all in” cost will typically support a 70%-80% loan to cost (LTC).This means that you can borrow $7M-$8M which means that you will have to invest an equity infusion of $3M-$2M.More fundamentally, if you are asking a question like this, your priorities need adjusting.Raising capital from whomever, and especially from friends and family must come after you have acquired and can demonstrate the skills necessary to build a $10M ground up development.I believe that if you pursue a plan to raise the equity required that you will find it very difficult to secure bank debt without a track record and or the skills noted above.Feel free to reach out to me if you want to talk.

Get into a property with good fundamentals in an area with decent appreciation and learn as you go.

The fundamentals of the question is whether to put down a large downpayment using a big chunk of equity to have a lower payment and purchase fewer cashflowing rentals or put down a low downpayment and buy more cashflowing rentals.