I'm guessing there may have always been a lingering 'delinquent' balance which may initially have been small but was unresolved and therefor kept the FC moving forward until it has become much larger.

My experience has been that as a new LLC/not part of a syndication, you will personally secure the obligation to a credited for the LLC anyway.In my mind, having the LLC makes you think of the rentals as a business-you need an accountant, legal team, property management decisions are more streamlined, and there is some pride in your own business, as well as those are the steps larger operators have as minimum requirements, and makes you ore credible at REIAs/networking events.There are a host of other factors that are constantly debated with strong, valid arguments on both sides, and I’ll steer clear of those to stay on topic to your post.

It also never hurts to have cash on hand to address larger issues that may arise within your portfolio.  

The returns obviously are better in a larger deal like that opposed to a 2-3 family, and i think that is what entices me...

I don't think my larger multi tenants know I own anything.

My lender has been good in the past but I was under the impression that small multifamily could be financed like a single family without larger down payments and higher interest rates. 

Hi BP fam!
I am underwriting various deals in the 30 unit range in the Charlotte, NC market (one of which is off market direct to seller) and I wanted to get the  opinion on how the BP community goes about estimating...

Another great way to get your foot into the door of multifamily is becoming a limited partner on larger multifamily syndication.

I used a business credit card and line of credit to build a relationship with one of the larger banks that is known for being harder to work with.

And, depending on the effective tax rate of the investor, the after-tax return on cash flow is almost always to some degree even lower.The simple fact is that larger multi-family properties (apartment buildings), mixed-use properties and retail buildings sell/trade at capitalization rates that offer investors’ greater yield assuming sufficient capital is available for investment.