Based on the law of supply and demand, your hypothetical statement rings true. 

The third option is lending to your local "hard money" lenders instead of to individual investors.

What is a Demand for Possession?

Whatever happens with these K1s on the individual tax returns of the partners is a different story.

And that creates a whole new discussion along the risk/reward continuum that will be unique to each individual.  

@David Edwards Yea, demand is very high in that area right now.

Always place the health of your business ahead of the individual.

Both units have two entrances and individual kitchens.

It wouldn't be a legal bedroom to rent to others that way, but two individuals in a one bedroom is common, just usually is a couple or parent and child in the one room.

Youn Profeshonals etc.It’s nice to have less roofs but depends on the complex itself.Are the unit in walk -up building (up and down) or 2 story town house style.The second is often more in demand because they are larger.It is a low cap, but that’s Orland I guess...How much money do you need to spend per door to achieve higher cap?