@Jeneé MurphyIf you are considering hard money then refi in 6 months it must be an amazing deal to pay that high of an interest rate plus fees..Cap Rates vary by location and are usually considered on properties with over I would say 10 units..

If he's funding the entire rest of the project himself, that may not be an issue in his business model.

I currently work as an RN along with my wife (who happens to be an RN as well) in the Pasadena area.

And I used to be an engineer also (Aerospace). 

a deal that cashflows negatively $400 now could also turn against you as rents decrease now that we are in a rent bubble. a $400 loss could be an $800 loss soon and not only are you bleeding cash then but your valuation will also plummet. we are in a unique market that isn't sustainable long term.. 

Also if you are not going to scale up, it doesnt make sense to be an OOS landlord

I think multifamily is the most scaleable strategy for most and that’s why I chose to focus on it.Let me know if you’d like to grab coffee!

If anyone is in Dallas area, I would love to grab a lunch/Coffee & do some networking.  

It shouldn't be an issue for you. 

You do have to be an owner occupant and have a 580 FICO score or above.