After construction, which I had estimated at 200-250k, it would have three 1 bed room apts, two 2 bed room apts, one 3 bed room apts and a coin operated laundry for the tenants.

Hey Everyone, So, question, as I do some due diligence on a 26-unit deal in Cincinnatithat isn't likely to go anywhere... for the following reason- the property is being murdered by its operating expenses (36% of it's GROSS operating income goes to paying for utilites).

In the first instance, you simple need a partnership agreement (or a company) with you as the operating/general partner to make it official.In the latter case, you may find yourself in the realm of securities regulation which will add much more cost and effort to your fund raising.

Not saying you are Karen, but many "investor" "operators" are often driven by the cash on the table and greed and proceed without caution as the steaks go higher, that's when they should be paying closer attention to compliance matters.

The $1M cap is an important restriction, but I actually think forcing issuers to have audited financial statements for raises over $500k on their 2nd offering will effectively make the cap $500k for real estate operators.  

They will put up the majority of the capital and  I will be the operating partner.

., however a simple operations change will fix all these issues.

I dont have much info to give u on the area, but if you want to be in contact with other investors that operate in the area im happy to be one of those.

(This is true in the markets I operate)

I think you are saying you have about 100k of equity to work with if you sell/exchange in which case I would suggest you look at MFR'S, either in close proximity to you as you referred to or even considering another market if necessary and just figure out those relationships you need in that other area the same way you would vet the turn key operations and resources.