They are building apartment sized homes with typical new subdivisions amenities, pool, parks, gym, etc.

Also hardware and doors and other little replacement items are odd sizes and so you may have a hard time buying off the shelf home depot products to make repairs. 

Rates can be a tad higher (figure the 5-8% range depending on a wide variety of factors like FICO,LTV, size, property type, etc) but the 30 year terms can often provide improved cash flow over the shorter term notes from local banks.

Here is a chart I did in a calculator for the math:Rental Property Calculator ResultsDespite the low Cash on Cash return percentage.

Rents are a little low but what is the location, sq footage, lot size, unit mix,upside.

Agree to pay them a fixed return in 1 year or 2 years depending on the size of the project.

Your profile says you’re from UT, so you know about the big family sizes!

Multifamily Experience Preferred & Minimum Net Worth equal to Loan Size. 1.25 Minimum DSCR.

.** Property Description **Address: Rapid City, SDType: HouseBeds/Baths: 3/Square Footage: 1,104Year Built: 1953Lot Size: 6,969 sq.ft.** Purchase & Rehab **Purchase Price: $117,000 ($106/sq.ft.)After Repair Value: $165,000Purchase Costs: $585Rehab Costs: $11,286 (75% Financed)Down Payment: $32,072Total Cash Needed: $32,657** Financing (Purchase) **Loan Type: AmortizingLoan Amount: $96,215Loan to Cost (LTC): 75%Loan to Value (LTV): 58.3%Loan Term: 30 YearsInterest Rate: 5%Monthly Payment: $517** Holding Costs **Holding Period: 2 MonthsLoan Payments: $1,033Recurring Costs: $414Total Holding Costs: $1,447 ($724/month)** Refinance **Refinance Loan Amount: $123,750Refinance Costs: -$4,950Purchase Loan Repayment: -$95,983Holding Costs: -$1,447Refinance Cash Out: $21,370Invested Cash: $32,657Refinance Cash Out: -$21,370Total Cash Invested: $11,286** Financing (Refinance) **Loan Type: AmortizingLoan Amount: $123,750Loan to Value (LTV): 75%Loan Term: 30 YearsInterest Rate: 4%Monthly Payment: $591** Cash Flow (Monthly) **Rent: $1,200Other Income: $75Vacancy: -$60 (5%)Expenses: -$255 (21%)NOI: $960Loan Payments: -$591Cash Flow: $369** Returns & Ratios (Year 1) **Cap Rate (Purchase Price): 9.8%Cap Rate (Market Value): 7%Cash on Cash Return: 39.3%Return on Equity: 9.2%Return on Investment: 277.6%Internal Rate of Return: 277.6%Rent to Value: 1%Gross Rent Multiplier: 8.13Equity Multiple: 3.78Break Even Ratio: 70.5%Debt Coverage Ratio: 1.62Debt Yield: 9.3%

10x12 is a great size.