I feel like side by side multifamily would be ideal, although they might be a little harder to find.

He mentioned that with the current hot market being tough to buy solid mutlifamily deals he is looking to invest in another 'asset class' so I was curious about what asset class that might be specifically.

I.......being from the pac NW where a SF costs about $300k for a 1,200 SF dump and your numbers run about a 4% CAP at best (I am sure there is good money here but it might take a Scrooge McDuck pile of cash to make it).......have been reviewing out of state REI's for a long time, Cleveland being a primary target (not the east side....wouldn't wish that on my worst enemy). 

As the rental market stays hot the rates are increasing quite a bit year after year.   

Here in VA it is very hot right now!  

If your dealing with newer properties your repairs should be very little but you might have the occasional hot water tank that needs replaced or a couple $100 repairs here and there. 

I’m in a 506(b) on the GP Side right now & other than the ability to advertise under 506(c), one reason one wouldn't go with 506(b) and accept Sophisticated investors is increased liability.We feel comfortable and run a tight ship so we’re not too concerned; However, our SEC attorney has drafted all docs (operating agreement, subscription, & PPM) and has encouraged us to have the PPM be a more robust version because we are allowing sophisticated investors to colloberate. 

I wish I had started hen i was as young as you.To fix the picture problem, Just turn your monitor on it side. 

Lots of good advice for the investment side. 

I agree....especially being on the other side of the state, I think partnering would be very helpful!