There is a real risk of being sued, whether your wrong or right.

ProsRisk DiversificationPotential to find better opportunitiesMore property available to choose fromConsFewer economy of scale benefitsStretched to thin due to more things to keep track ofAdditional risk due to higher overheadRisk of needing to rely on a new set of individuals (Sometimes the Devil you know is better than the one you don't)Potential to end up with less profitable opportunities

I am lucky enough to be backed by 5 private investors who collectively will provide up to $2m to get me started, and have a pretty high appetite for risk (so I can use leverage).

There is very little support for high LTV loan products in regards to building Multiplex because banks see them is high risk.

That is the risk you take doing that type of investing.

This makes a kind of sense, but I have concerns.And it's not as though I am terribly risk adverse, either.

The ladies love the warmth at their feet while they get ready at the sinks & no risk of fires with electric heaters.

I know I know we should take that risk to get the returns but just starting out we want to feel like we have a little more control of the management of our property. 

If you believe CRE will crash soon, then you should stay away from it or just risk very little money on it. 

Chances of this applicant being able to find another landlord willing to take the risk on renting to him on such short notice is unlikely.