With respect to what is an appropriate split (preferred return, 70/30, or 50/50), personally I believe everyone gets caught up in the percentage of the split verses the rate of the return.The reason many multi-family products have a high split or a preferred return in favor of the investor is they need that split in order to generate an attractive rate of return. 

We're in Raleigh and I can tell you that the zones here are not in favorable submarkets (obviously).

No favors, no freebies, etc. 

They typically loan to 80% of the ARV.You would have to negotiate out the terms (interest, points, term) but it could be more favorable than a bank REFI. 

There is always an opportunity to make or loose money in real estate so getting your very best negotiated deal puts the odds of making money supremely in your favor.

I'm a New Yorker and one of the reasons I invest at a distance, aside from the 2-3% deals, cost of entry etc.....Was the favorable landlord tenant laws.   

Terms are normally less favorable and, as stated, a balloon normally comes with it.

this is what I call a tipping point.. investors will never beat an owner occ.. the only time i have seen that is in the last 5 or 6 years were you had corporate or bank owned assets and they favored cash over financing.  

However, you being added to the picture does make things more complicated and likely less tax favorable.

There was a high profile case but I believe that case got dismissed in favor of the Commonwealth.