Where I live in NY houses go for 600k  plus...unless you are a celebrity or born with a silver spoon or are wiling to work for 60 yers before becoming a home owner... you'll never own a house.Getting creative and using Other Peoples Money is not bad, its sophisticated and 100% valuable.

Trying to determine if this is reckless or sophisticated investing....The idea is that annual percentage increases and the possibility of rates lowering will allow for positive cashflow.

Quote from @Raj Patel: Added commentsMixed Use: - Longer vacancy times - To get a tenant, you may pay a LOT in TI (Tenant Improvements) - You may be less likely to get in a lawsuit, but if you do get into one, you may be in a fight with a sophisticated business owner, not an unsophisticated individual. 

Expenses like this include things like property taxes, insurance, maintenance, administrative and office costs, payroll, marketing expenses, and property management fees. 

If your accountant is unaware of this, then it maybe time to find someone who is more sophisticated. 

When you are forming all sorts of small partnerships with no real "corporate" backing and pooled asset base to provide security for the counterparty, typically you can't get a swap.right so one of this big group that brought swap is making huge win when rate is going up, i would not reveal their name, you are right it's not for everyone juice. but for us small LP, investing to those big group and the small newbie sndication, is just about the same.for swap, i read in pensford website and they are really sophisticated, leant tons about interest rate.

They don't have the capabilities to handle sophisticated accounts or much that veers towards commercial lines insurance.5.

I am glad to see all this relatively sophisticated analysis.  

By the time you pay them a fair wage, and the labor burden (payroll taxes, etc) and the Workers Comp, you will have a huge weekly payroll nut to crack.

This type of financing will typically look very different and more like a traditional commercial real estate loan.That means a DSCR calculated based on a full NOI and expense load (so inclusive of vacancy loss estimates, credit loss estimates, repairs and maintenance, utilities, management fees and more – in addition to the property taxes and insurance expense that are the only expenses factored in on traditional residential style DSCR loan financing).Additionally, the DSCR minimums are generally going to be higher (typically up to 1.25x), the loan to value ratios lower (higher down payments) and underwrite more sophisticated (which makes sense considering the size and scope of the property).Many multifamily investors for properties of this size (such as more than 11 units) can syndicate capital and have more sophisticated financial and entity structures – its definitely a different world once you get up here in unit count.In Conclusion – when you are looking to invest in multifamily real estate and finance your investment – make sure you have the unit count in mind before you start shopping – the unit range can have a huge effect on your options.