The more you know and plan for, the less risky an investment becomes!

be careful of those offering to do these deals and wanting commitment money up front 95% of those will be fakes and will just steal your money.. you have to realize that gap funding behind HML is by far the most risky loan anyone can make in real estate .. so u may not have many if any takers on this unless your offering a big equity upside bonus and more of a partnership.

Since SF is a special case, this risk is pretty common.

Very risky bet.

I am in foothills West of Denver specifically Clear Creek County and have been working on some insurance quotes after getting a cancellation for increased fire risk.  I

Overall we have vastly more “good” tenants, and the law allows you to get rid of the bad tenants and maintain a desirable place to live for the good tenants who you want to keep.High-maintenance <=> High-Return: Those prior two points drive what I meant when I said the cash flows and NOI should be about double what they are on a “vanilla” MF (multi-family) purchase at the same price point, but it can be a high-maintenance proposition to manage the screening on the front end, the day-to-day management issues, the more frequent turnover and vacancies, and the frequency of needed court filings to get the keys back from a tenant when somebody is not being a good neighbor to your other tenants in the lodging house.Bottom line: We think we were right on point five years ago when we identified that SROs fill a critical niche that is in extremely high demand.

To me, the margins seem really thin, and unless you've done a similar project like this before with this contractor, this is a risky project where things you expect will inevitably go wrong. 

It's a risky investment .

When you see real estate agents in the forum asking for business and providing no value or proof of value, the value proposition should be obvious.If you want to work with investors, find my other post in this forum.

Assuming that is the case, that doesn't seem very risky.