Overall, I think you will make a much better return using that income to acquire new properties.

Best I can do based on your original post is with condos you really need to watch the HOA fee that can eat your returns alive if it is high.

I would love to hear how other investors structure the returns for a financial partners on small/medium multi family buildings? 

It basically comes down to what return you can earn investing real estate and what your interest rate is.If your interest rate is 7 percent and you can earn 12 percent doing REI is it worth it?

Cap rate somewhere around 8.5 and cash on cash 16.5% Better than most 401K returns.

Ryan Wilson Figure out your Return on Equity (ROE): total annual cash flow divided by equity in the property.Compare that to the cash on cash returns of other properties.

The sheriff returns your deposit if you are unable to obtain a title insurance commitment.In this case, the recorder website shows only the first mortgage - a 40 year mortgage that was in place since 1988.

From first hand experience I can tell you that there is great potential in Waikiki for high returns in the short term rental market.

Some of my favorite metrics are % return on money invested. 

Trading of a 5% for a 10% return has to be balanced against the hard and soft costs of travel to visit the property, no sweat equity, the use of a property manager, etc.