That being said, the structure will matter, especially if any Pref or cashflows to you are being structured as a return of capital vs distribution vs something else.

I hope to use private capital to fund the entry fees in second position.  

Appreciation takes time and from everything I have seen and read, the Northeast is a good place to be for appreciation if you have the capital to start there. 

I feel like this may be the best opportunity for house hackers as there will be some early adopters who capitalize on it because you can basically turn a single into a multi.

what's your intention for continually raising capital?

I was honestly shocked and horrified when you didn't just say something like "Yeah, Scott, I own the frigging building - I raised the capital, formed the entity, am responsible for operations, and plan to deliver the best investor experience (and great returns) that I am capable of for the investors who I've partnered with."

You're spending over $600k (purchase price + rehab + fees) to make $25k, and then you'll have short term capital gains on that...

All the depreciation and the capital gains go away.

Be careful about feeding additional capital into syndicates with short-term loan maturities if the only plan is to negotiate lender maturity extensions for another year. 

@Jenna SchulzeAs a newbie investor with limited capital, I’d invest close to home.Invest in areas you know well.I’ve been in the RE industry since 1978 and people always ask me:What’s the best market to invest in?