I am currently an owner of a SFH leasing to an ALF operator.

@Justin Onyeador Also keep in mind that self storage is typically more operator-intensive.

I am currently an owner of a SFH leasing to an ALF operator.

That is how 99% of wholesalers who fail operate and most leave the poor seller hanging when they back out of the contract.

Mortgage lender is giving me full 200k at 4.25%, 15 yr mortgage.Property to purchase after mortgage and full operating expense including vacancy rate3%, maintenance, capital exp, positive cash flow $600 month.Higher mortgage now, less money in pocket vs lower mortgage, little extra pocket money and some equity to start.Question: How do people feel about collateral vs down payments?

Be sure you are complying before hiring someone who does not legally operate in that space. 

Think of it this way:If stabilized operations presume 5% physical vacancy, then if you could squeeze 2x the income from 5% of the units in the community, you could effectively "erase" the entire 5% vacancy.This is the second unit we furnished at Canyon 35.

Using a cap rate calculation along with an estimate of operating expenses (30% operating expense margin as a soft rule of thumb), we estimate the building will be appraised at around $1.45M to $1.5M.

I live in Johns Creek and operate in Forsyth as well.

Get an attorney to draft the operating agreement of your new company and make sure things are crystal clear.