., never being allowed to rent it even after 5 years are up, or only being allowed to rent it to low income people even after 5 years, etc.) and you don't want to be at the closing table (or later) and find something you object to.Free money is great, but you may find (as I've found) that it usually comes with some pretty specific conditions.

Not to mention when you're vetting deals the 20 unit property has probably been professionally managed so you have a better chance of getting a genuine/objective T12.There are advantages to 4-plexes but it seems like you're leaning that way so I'll still with the "devils advocate" for larger unit complexes. 

This way your end buyer investor will see exactly what you're pulling for comps, can go over them and show you what their objections are.  

There are a lot of parameters, but either the property fits your objectives or it doesn't.

"There is no objection to the use of the HUD - 1 in transaction in which its use is not legally required." http://portal.hud.gov/hudportal/documents/huddoc?

You might need to explain your investment objectives to them.

So you might find it tough to gain traction in investing with what you have to deal with in overcoming her objections. 

I say this because it was at a similar stage that we got "shiny object syndrome" where we got bored with the same old, same old of buy-and-hold. 

You need to spell out before hand exactly what are the objectives of the partnership, what happens if a partner wants to back out, how the income/expenses be split, etc.

It's an objective and subjective process.