You will need to claim that property as your "primary residence" for tax reasons because the bank will cross reference for that with an automated system. 

Like hiring anyone else I suggest asking for references.

Ask if they get any kind of benefit for referring a particular person.

ABIA is 7 miles from the Capital for reference.  

So a 50% drop can make someone lose everything.TLDR - safer leverage with direct RE, non-callable, possibly non-recourse, along with tax benefits.I'm a newbie so let me know if this is incorrectHi Kesru, a few comments:-Leverage - multifamily syndicates typically use 75% leverage which is likely the same level that you will have with what you refer to as a direct investment.

Please advise.I suspect what you are referring to is a fee, added monthly to the rent income.

Hi @Ryan Fisher, I'd be curious how closing costs on a $460k property are $3,000, and how there are $0 in repair costs on a 4-plex (with what I'm guessing are varying degrees of tenant quality).The seller likely views it as "great cash-on-cash return" because they bought it in 2011 for $175,000: When they say "great cash-on-cash return", they're probably referring to their own ROI, i.e. how much they're earning compared to how much they invested back in 2011.  

A friend of the seller knew me and referred the seller to me.

If you need references for either of them in San Diego, let me know.

I pride my self on being able to be the person that people would want to use over and over and feel secure referring to friends.