from the documents a few BP folks sent to me a few years ago. it looked like they were investing in multi beneficiary mortgages IE multiple investors in a fractionalized mortgage.. which can be argued is a security .. in CA they are quite common but you have a specific disclosure document that must be filled out by a real estate broker .. it lets you know who the co investors are.. which is really the rub here.. none of these folks know each other.. and of course this is always the rub in a pooled syndicated investment that goes south.. 

I do think that you may be able to receive an overall higher return in another market, I feel there is substantial value in knowing the area, being able to swing by the property if needed (managing the property managers is more work than one might think and necessitate an occasional visit on your own even with a manager), and investing with little turnover/vacancy. $160k for 6 units at $500 a unit would be an excellent property but only if there is little turnover and it is in a decent area.

The numbers must work and the deal needs to stand on its own two legs !

IRA must get the loan if you wish to finance the purchase, you personally are not allowed to guarantee the loan.

This nets out much cheaper than buying a similarly sized 3/2 Single Family home and offers nice flexibility with the extra 1/1 unit for an additional renter, STR, or more privacy when family is visiting! 

ii am saying in nyc / brooklyn , you must have a meter for each apartment. and so far every deal i check out that doesnt have its own meter turns out to be illegal .

Borrowing has definitely changed over the last 4 decades so you must adapt.

RM’s have the “must sell for 95% of a current fha appraisal” due to the fact the fha insures the vast majority of them, and that is their requirement for them to pay out on the insurance.

Obviously you must have access to both MLS's to see what's listed. 

@John Umphress - Congrats on the 36 unit - must be very exciting.