Newbie Investor - Transitioning from 3 Family Investments to 5 - 20 Unit Investments

I have been poking around the 3 family residential space for a few years now. I've flipped a 3 family and purchased both a condo and three family for long term cash flow play. I am starting to feel like the juice isn't worth the squeeze in the 3 family space and am interested in looking at bigger investments. I have access to investors who are willing to put up the majority of the capital stack in return for a pref and 50/50 split above a negotiated hurdle. Has anyone made this transition and is currently investing in this 5-20 unit space? What is the typical capital stack on a 5-20 unit resi deal?

5 Comments
 
 

Interested to see if others are playing in this space.

How much equity is the GP coming to the table with? I'm guessing 10-20% to get to 50/50 right after an agreed upon pref? Cap stack of 75% bank financing and then 90/10 equity LP/GP for the remaining 25%?

 

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