However, if things went south the exit strategy would be to dress up the property and aggresively market it based on favorable cap rate and income potential.

In this case you do not want to go along with their terms and their proposed terms appear to be in the their favor.

Lately there has been a real lack of multifamily properties in my favored area which is a real bummer now that I'm out looking.

Not to say avoiding risk, but at least you can favor the odds...

David,If a real estate agent does run the comps for you, the best favor is used that realtor to close your deals.Joe GoreDallas, Texas

He did you a great favor by getting his butt out in a hurry (assuming that he left it in pretty good shape).

I also favor JVs for most small deals.

This is what you will need eventually as you grow.Do yourself a favor, get the team in place!

I have used a HELOC to purchase other homes, and am definitely in favor of using HELOCs as a leveraging strategy.If you plan on tying up the money in a loan or a long term buy and hold, I would suggest a 30 year mortgage.

In fact, you could make an argument that it makes it less favorable because of the increased due diligence requirements the syndicator must implement.