Many markets are currently not red but white hot and will experience a correction some time in the near future.

Will, who's going to lend William 100% of the $300k purchase (and rehab cost), based on a future guess? 

They make or break the transaction in the future.

I see a lot of Single family advertise as 10% cap rate but once you take into account insurance/ Capex for future repair etc i think it is closer to 6%/7%.Whereas for a condo I don't see the  expenses to add up and deteriorate the cap rate to 7%.

It also helps to build up a variety of team players for your future endeavors by checking out the company page here on Bigger Pockets to hook up with a few professionals in the area you need team support in.

I would like an approach that is fair to current investors, but also encourages them to let some of the funds rid for future investments.

These losses are suspended and can be used in future years.

@Calvin Kwan I'm planning to build a new unit altogether.And that unit would not be subject to rent control for the foreseeable future, since all new construction in Oakland built after January 1 1983, is exempt from the rent control ordinance. 

Also is there a way I can take all the points as a loss in one year in the future when I have a lot of rental income coming in?

There is initial cash flow then there is future cash flow.