Hey Guys, I just wanted to get some thoughts, if you were to have 150 grand in cash how you would leverage it to get the most out of your money.

The bottom line is do you know these people (in this case-yes) and where are they in the grand scheme of things- sophisticated or accredited and what type of an offering are you doing 506 (b) or (c)? 

I would definitely dig deeper into it rather than just assume it's too good to be true.This could potentially be a grand slam deal so I would start doing further due diligence. 

I am a member of an REI group here in Grand Rapids so I have a good network of people I can connect with there.  

I've been looking, researching, watching for 6 months now, which in the grand scheme I know is not a lot.

I'd rather hand over 25 to 30 grand to a private lender who I can have a personal (long term) relationship with rather than the HML with the huge money cost plus the 25% down.

There are two (yes, only TWO) duplexes/triplexes for sale right now in ALL of Elk Grove.There is a Duplex on La Nuez Dr offered at $315,000 with rent's of $985 each side, hardly passing the 0.60% test let alone the 1% test.And there is a Triplex on Rancho Grande Ct offered for a whopping $520,000 with total rents of less than $2,800 and scores even lower on the 1% test.Put simply, there are better rental markets out there amigo.While you might be able to find a rental with no rehab needed in a great area, and possibly great tenants, the prices are simply too high and the inventory too low and due to most people living there wanting to own the home you may go awhile in-between renters when your high quality tenant saves up some cash and buys a house.

@Michael GarrisonI was just trying to see what would be best for his situation, conventional online lender on  a residential loan which would be cheap and great terms or a local portfolio lender on a commercial loan which would be a little more expensive but still cheap in the grand scheme of things. 

At the Grand they are very expensive (I guess 800 plus)2) I believe for that price you are buying a share (likely your 3 months assumption so ....

My earnings potential expanded exponentially as I went further into school, and if I had done so from the beginning I would probably be at least $200 grand further ahead than I am now.