I also prefer that the managers share the risk alongside me - via skin in the game and/or profiting only after I have my capital returned along with a preferred return before the manager/developer makes any profit. 

My cash flow from my Houston portfolio would beg to differ (of which, about 700 units were bought in the last 2-3 years so we're not talking about properties bought in the 80s that happen to be doing well today)

@Michael TruebaMichael: Your best bet would be to call a couple property management firms who have expertise in the asset size that you're pursuing and ask them what they're seeing across their portfolios.

Risk management is the name of the game.

I started my "professional" career in the insurance world as a property claims adjuster/estimator and know the game fairly well.

I doubt they will extend it to the "A" lending portfolio as many of them have thriving "B" portfolios due to the extremely difficult lending environment the federal government has created in an attempt to help the affordable housing problem that was created by them in the first place. 

I think it's a good idea to take caution and keep cash reserve for rainy day (also gun powder dry to get cheap property in down turn). if your portfolio is sfh then you going to have a bit harder time.

I see some people overpaying for properties in my area too but I chalk some of it up to someone inexperienced dying to just get into the game. 

My second suggestion would be to look into Portfolio lenders.

I'd like to start adding more multi-family units to my portfolio and wanted to expand into Nebraska.