Two years ago they were offering me a competitive rate however after one year they raised the rates quite a bit. 

@Raj G.Default Interest rate is a different rate than the original loan terms because the borrower didn’t repay the loan per the loan terms.

:In accordance with the City of Chicago Building Code Title 14B:14B-6-601Table 601Type V-A construction:Floor Construction and Associated Structural members:The table notes a 1 hour fire resistance rating; however, in accordance with exception (g):"In single family dwellings, the floor construction over basements and unexcavated spacesbelow the first story above grade plane is not required to have a fire-resistance rating."

There are  additional fees incurred investing this way: membership fees, fees to maintain the entity that carries every deal you get involved with and possibly other non-disclosed fees. 

Option 2: Private LoanIn this option, a promissory note is written for my partner to loan me the down payment amount (20%/$46K) for a 2-5 year term at a 10% interest rate (details are still up for negotiation - are these terms reasonable for this kind of deal?).

The last one I purchased was right at the peak in March of 2022 and when rates started to rise.

I've begun keeping receipts on upgrades, fees, etc... to be prepared for tax time. 

The projected cap rate is 11%-12% which is not bad at all, especially considering that once the remodels are complete, rents will more than double.

The reason for this is because there is a possibility for interest rates to expand and/or market conditions to soften.

Talk to local investors (someone unbiased, not an agent or wholesaler) and experienced property management companies who will let you know rental rates for different areas, tenant base, etc.