Difficult to generate positive cash flow at that cost.

The position exposed me to a lot of information.

I can see them doing that, and then down the road, the daughter sues the lender for the impact of a short sale on her credit report, for a transaction she did not participate in and/or did not authorize.

Or I go the 1 MF property, put 25-30% down, get a loan, and I still would have positive cashflow but no nearly as much (at least for many years). 

By the time yup decide to split you may already be in a bad position.

@Tarik Turner you might want to consider finding someone who will do gap funding for an equity position.

I've analyzed deals all over Southern California and most of the time the inflated purchase price gets rid on any possibility of positive cash flow.

My instinct tells me this is probably not great although it does mean there is commerce nearby so hoping that is a positive.

Despite the high prices, therer are still many options for multi-families to throw off a positive cash flow.

And on the other side I definitely think there are valid concerns around the impacts that an increasingly in demand market can create for those unprepared to compete with the demand.