Can you elaborate more on these alternative investments ?  

The options I am considering are:  Refinance my house and pull out all the equity or draw the HELOC I have on it.The down payment would be about 20% of my total network.Which of these two would be a better alternative to get these funds?

Here is how my management services agreement is structured: 1) Define terms ("manager", "properties", "portfolio", etc)2) Term length3) Authority of Manager- specifically spells out what the manager can do on behalf of owner (and exclusivity)4) Responsibilities of Manager5) Responsibilities of Owner6) Property Maintenance (spending limits and expectations)7) Compensation (spells out ALL fees that I would ever charge an owner)8) Liability and Indemnification (protective of Manager which is industry standard at least in my region)9) Insurance requirements for owner10) Leasing (how manager will acquire tenants, non-discrimination)11) Termination (notice requirements, etc)12) Legal stuff (choice of law, merger clause, notice, etc)Hope this is helpful I can expand on these if you're interested more

Essentially they are a poor choice. and you still deal with the only ground stuff which is the real hard part of itOriginally posted by @Michael Baum:Evolve does that for 10%.

The second choice is to refi the first property to 25% equity and consider it as an investment property.

You should probably consult a lawyer and cpa to help you decide.As a general rule, for LLC owning directly real estate, it is often recommended to have the LLC recognized in the state where the property is located as it is a requirement if your LLC need to be represented in court (think eviction or code enforcement problems).There are ways around like using a local operating entity or even in some cases land trust.The choice of the LLC state may also be based on some cost factors.Last but not least, while all LLCs have the same inside liability protection, states differs widely on outside protection.

Therefore, resident on first floor needs to make an effort to wake up by an alternative means (e.g. buy a vibrating device).

I'm accredited, so I was thinking to invest directly into MF (out of state), but after all PM fees and everything, it would only cash flow $100-$150 / door, and I'd have CoC maybe 6-7%.My other choice was to invest in a few syndications for more passive work and likely less headache.

Probably what is killing the deal is the down payment that would be required. you could not go FHA or VA so conventional would be the only choice. 20% down would be almost 400k!

There are alternative qualifiers like - Alt Doc - 12- or 24-months bank statements.