Prefer a 2 bd / 2ba but will consider 1 bedroom. 

I told him it was going to cause problems on down the road, and he assured me he had 'done this before' and 'had ways to deal with it'Our contract, which is already wordy, we altered to explicitly say we were not pulling permits and wouldn't be held accountable for the repercussions of it.

Ideally, I'd like to go straight into multifamily properties as I'd prefer to have multiple doors under one loan instead of just one (if that makes sense).

I prefer cold hard honesty over a fairytale anyday. 

They prefer to invest near the track. 

I prefer mortgage brokers.

Can you tell me what style you prefer and why?  

A follow on.......sorry.......I want to add that it is OK....even preferable to bide your time and learn about all the different facets of RE investing.  

I think it does comes down to personal preferences.  

With your current structure, you could just walk away; he is taking the hit.You may also want to offer a preferred return; meaning the investor makes the first X percentage or dollars of the projected profit.