This can come from many different directions, but most commonly it is people that you have a personal relationship with and/or a referral from a close friend that I trust, especially when you are starting out, and even then it is still hard because you need to not just have these friends, but they also have to have some liquidity to invest.And to address your other question about track record in SFR vs MF, to some extent you are correct on the assessing deals. 

Also all replacement of tenants is approved by you, no subletting or additional tenants.

Hi @Patricio Acosta, nice to meet you here on BP..This is a common challenge for active investors bringing in capital without complicating their entity structure.

@Matt Hilliard Matt, you’re running into Oregon’s “clawback” rules—a common issue when exchanging out of state.

That common sense is all too uncommon nowadays. 

Quote from @Andy Chen: Hi all, I’d like your advice on how to structure a potential deal.A friend of mine owns a property outright that still has plenty of space for additional development.

I'm looking at two different lending options.Regardless of which option I choose, my plan is to refinance by Year 5 of owning the property to: a) get rid of PMI if appreciation is good and LTV < 80%, and b) cash-out equity to purchase a second house hacking property.Assumptions: All in cost: $506,500 (purchase price + rehab costs + closing costs)FHA 203k already accounts for ARV, no natural appreciation, value is flat with LTV at Year 5 between 88-90% 30 year Fixed Rate Mortgage 6.5% APR and 3.5% down, P&I of $3,0915/1 Adjustable Rate Mortgage 6.0% APR and 3.5% down, P&I of $2,932That's an additional ~$150 in monthly cash flow during the first 60 months of owning the property prior to refinancing if I go with the ARM route. 

However, these are the ones most commonly used:Five-of-Ten-Year Test: You must have materially participated in the activity for any five of the past ten years.500-Hour Test: You must have materially participated in the activity or activities for 500 hours in the current tax year.Step 3: Calculation your participation hoursEnsure you are tracking your participation hours.

Every lender has slightly different requirements, but here are some of the common criteria we look for:Property Ownership / Purchase Agreement – You’ll need to show either a purchase contract or proof of current ownership if it’s a refinance.Exit Strategy – Whether it’s a flip, refinance into long-term financing, or a sale, the lender wants to understand how the loan will be paid off.Credit Profile – While perfect credit isn’t required, most lenders will still check for recent bankruptcies, foreclosures, or major delinquencies.Down Payment / Skin in the Game – Typically expect 20% down on a purchase. 

., exterior/landscaping while interior demo proceeds).Use a Gantt chart (even a simple spreadsheet) to track trade start/finish, dependencies, and buffers.Daily control15-minute stand-up with GC or project lead each morning (photos + punch list).Two inspections/week: one quality, one progress vs. schedule.Keep critical spares on hand (breakers, valves, GFCIs, common trim, extra boxes of flooring).Tech + templatesSimple tools (Google Drive + shared photo folders, or apps like Buildertrend/Jobber) for scope sheets, punch lists, and photo proof.Use QR codes in rooms linking to the finish schedule for fewer “what goes here?”