The barrier is the additional complexity - now you are operating two sets of books, and filing two tax returns, and have more operating agreements, more state registrations, etc, need to manage cash better, need to keep in constant mind that your rents need to be a supportable FMV, which may require getting third party certification on your rents so that in the event of an IRS audit, what you have done is supported.In short...the size of the project, and the taxable income, need to be of enough scope to make all the additional costs and annoyances worth it. 

For 5-9 units, you could get to the low 7's assuming the DSCR is excellent.

With this T12 I am suspecting the apartment wasn't fully occupied in the preceeding 12 months, hence the low rental income.I am very concerned with over 40% operating expense.

They can’t lend you more because if they have to foreclose it will cost them at least 10%.)Then you want to take that $300k and get a loan for another $300k with that $300k to buy your dream home.

@Rania MutumheHouse hacking means turning a place into a rental space, which calls for fix-ups, planning costs, and expert help.

It depends on how much the NY house will sell for vs how much the TN house will cost.

This is because keeping a property nice has associated costs.  

I am looking for an investor to partially fund some of the soft costs for a large townhouse project I'm working on. 

To your question in the post's title: It's got to beat low risk investing, such as treasury bills.

In this same deal, the investor would need to come with 15% plus closing costs and let's call it 17k.