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.

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.

Here's a fundamental explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

However, if you're aiming to scale your portfolio or dive into your first deal, it's crucial to understand the business fundamentals and cultivate the necessary relationships.

Fundamental long-term, neighborhood areas I believe reached their bottom in Q4 2022.

Fundamentally, the money supply had irreparable damage and that would tell you scarcity plays will remain the most potent.

To start, these are the fundamental underwriting inputs the GP/Syndicator will be making when arriving at their offer price:Management Fees: This will be very similar to any other bidder who relies on 3rd party management (and generally more expensive than a local operator who benefits from the efficiency of managing an existing local portfolio).