While evaluating potential investment properties these past few weeks, I have realized that the average rent in Austin is comparatively lower and due to high interest rates and property tax, the outcome is mostly negative cash flow. 

If your friend just wants to be the bank and park his money for a guaranteed rate of return then I think 10% is fair and pay it like a dividend. 

It's hard enough borrow at regular mortgage rates and generate cash flow. 

I'm assuming that with your hard money interest rate will make that a pretty high monthly bill.

I understand paying a fair rate for services but I expect things to be transparent and timely. 

All 3 units were occupied very quickly and the property is now cashflowing above our projections with vacancy rate (so far) below what we expected!

Marie is an old city with a high vacancy rate, declining population, poor tenant quality, and will never see any meaningful appreciation.

.- I want a market adjusted return/yield.

The only downside to these is they are typically higher interest rates and shorter terms. 

If you'd like to hop on a call to discuss the Charlotte market (where your property is specifically), the rate you currently have it listed for, etc.