I'm sure this was definitely a thing that was achievable in the COVID years...So the 2% rule seems like it would get you a lot closer to your mark than 1% in today's interest rate climate.1% really does seem like a unicorn.Now - here's the nitty gritty.

Our primary goal is to retain as much equity in our properties as possible while leveraging outside capital to scale faster.Proposed Investment Structure:Investors contribute 30% of the purchase price and 30% of furnishing/rehab costs.Our LLC secures a new purchase loan in its name only, taking on 100% of the debt.This structure allows us to maintain 70% ownership of the property.Properties will be actively managed to maximize returns, likely achieving higher upside than long-term rentals.Proposed Compensation for Investors:6% preferred return annually.After the preferred return is met, profits are split 75/25 (with investors receiving 75% of profits on their portion of ownership).Profit Calculation:Revenue – Operating ExpensesExcludes mortgage principal & interest, as our LLC assumes full responsibility for the loan.Looking for Feedback:Is this structure fair and attractive to investors while ensuring long-term alignment?

Currently, we're contemplating switching to a different dialer to see if we can achieve a better outcome.Feel free to reach out if you have any questions, good luck!

My recommendation would be to plan to achieve a diversified portfolio across sponsors, geographical areas and asset classes. 

From a financial standpoint, the key is to ensure you're purchasing properties at a price low enough to make rehab costs and refinance achievable.

Multifamily properties can benefit from forced appreciation, where you increase value through renovations and improved management, potentially achieving 5% to 7% appreciation annually, especially if the rental market remains robust.

Having a vision of the outcome and overlook the work that must be done to achieve it.

Are there better alternatives to achieve these goals while keeping tax efficiency and financial flexibility?

Can IRS still see it as a part of primary dwelling unit and thus, consider it not eligible towards achieving REP status?

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.