You make a great point with the CAPEX though - I will increase that. 

Has anyone built a spreadsheet that would model cashflows and increasing rents to help me figure this out. 

If the size of the project increases in size and the time to get the full expected return on the project is really long then at least for me the returns have to go WAY,WAY up to compensate for the risk factors.These days I look at retail properties.

We performed very well for them, but as I stated previously they have experience with us in the first lien position.To make up for the increased risk, I had also considered adding points, increasing the interest or even cutting them in on a small percentage of the profits in addition to any interest.I just want to do right by them as they have already told us they are in for more deals, but I was thinking that we couldn't be the first ones to ever be in this situation and was wondering if there was anything that was sort of the standard.We can provide the cash ourselves, and maybe we should, but I have the cost of funds figured into the deal and we still come out incredibly well on margin, so the preference is just to pay for the use of someone else's money.

We’re only 5 years away from payoff, and an $1,165 projected cash flow (not counting rent increases).

  :)   I recommend you increase your network to be 50% more experienced than you in the local market.   

But then the recapture would increase my basis, which would decrease the STCG profit at that point, correct?  

Sure, it doesn't increase my equity share on the back end, and I am actually doing the work for the 10%, but it is a higher percentage "profit" than my partners.

Risk is they refuse to comply with rent increases etc. placing them in control of your community.

It is getting increasingly competitive as more investors come in from NYC and overseas, but there are still great deals to be found.