I am a single family investor looking to make a first multifamily investment in a friend's company where he is the lead GP.

:-)I invest with a private company in FL. 

Homeowners are leaving companies like that in droves and you may be just as successful on your own.

., if they're the selling agent or own the construction company, etc.)If all estimates go to plan, then the 55% net profit should provide an 18% annualized ROI for the $1M, but likely lower.

At the 6th month mark you can elect to do a "rate & term" refinance if the LTV is 85% or less.You can use the same title company "Master policy" to save a good chunk of change on the refinance and ask for an AVM to avoid an appraisal (if no cash out).

I know people who have purchased properties for appreciation because some "big company was moving to town and the values were going to skyrocket" or based on some news their buddy told them, who subsequently lost everything when the company plans changed.There are many ways to skin a cat.  

I do drive past my properties (granted, I intentionally have always bought within a 10 minute drive of my house) and after bad experiences with 4 different management companies over my 14 years owning rentals, I self manage and self lease.  

Whether it's an electrician, or yard person, title company, Property Manager, etc. usually getting a referral from another investor in that market helps limit our risk to "unknown" people. 

I own a marketing company and a  Non-profit organization for assisting homeless veterans. 

Maybe I should bring this up with the company...I don't want this to be all about GR but we have always had DSCR options that go below that 1.25% ratio.