Ultimately, I need to convince these GP's, who are used to dealing with friends and family money, where they were lucky enough to split all cash flows 50/50, pari passu, and have the loans co-guaranteed, to take a deal with a 20% carry, an 8% pref, serious collateral put up, etc. 

Currently My wife and I rent a home in the Denver Metro.

unless you get a flea trap.also travel time .. these days it can take 90 minutes to get from one side of the metro area to the other during commute times and even without its 30 to 40 minutes.  

We have a small multi-family building in a more rural small town just outside the KC metro and we have not had nearly the traction with zillow that we get with our other properties. 

Hello BP Community,I am currently trying to close on a property in the Boston metro area.

You're obviously no in Denver metro.  

We have about $400K in cash (so assuming a 25% DP, we are talking about a $1.6M investment/s).We thought of investing either in the Denver Metro area or Out of State or both.

-Katie Since we don't know the particulars it's a little hard to guess, but using a spreadsheet with examples can give you some ideas:How I buy houses for pennies on the dollarhttps://www.biggerpockets.com/forums/311/topics/678938-how-i-buy-houses-for-pennies-on-the-dollarAverage Cash FlowAverage Cash Flow Per Door In Phoenix Metro Areahttps://www.biggerpockets.com/forums/600/topics/584916-average-cash-flow-per-door-in-phoenix-metro-area

That's not clear from your description and could have a huge impact on the cap rate.Also, how big is the metro market, what's the median home price, and the average 3-bedroom apartment rent?

I work the Metro South.