I believe you will find Reg D 506(b) is up to 35 sophisticated investors with a preexisting substantive relationship with the General Partner. 

The real death rate for non old people that don't have serious preexisting conditions is basically zero.

Daniel - That makes sense, it seems like it's oftentimes a struggle to make sure you come into a situation where there was a preexisting relationship/agreement, and ensuring you have a full understanding in order to fully follow through.

So, the initial down payment(20k) doesnt go directly to the preexisting mortgage?

At some point, we might switch to 506(c) offerings, but I'm always more hesitant to go that route because it greatly limits who can invest in your deal.The benefit to using a 506(c) offering is the way that you can market the deal, but I often find that most investors (accredited or sophisticated) are highly unlikely to invest with you if you don't have a preexisting relationship with them. 

Are you referring to possibly adding additional dwellings to the pre existing building, or additional buildings onto the land detached?

I have an investment lead in San Juan wherein the entry strategy would be taking title with an underlying pre-existent mortgage.

If you are raising under a 506b, you must have a preexisting relationship with investors.

Start building relationships with people who syndicate now because most syndications are 506B (you need to have a pre-existing relationship with a general partner as an accredited investor or sophisticated investor in the deal before you can invest).

It's hard to imagine how plugging in too many appliances into one circuit could cause a breaker to become unusable unless there was a preexisting problem with that particular breaker.