Solo investing versus partners...

[Matt R.]

I have been a landlord for only 3 months now, and I own three homes, all currently rented.  I live in a hot rental market and see opportunity around every corner.  With my current properties, I net 16.75% a year on these, and I know if I had more money to invest I'd become seriously rich.  But...

The dilemma I am having is this, if I just invest my own saved money I will make a decent living.  Enough that I will never again (hopefully) have to have a full time job outside of being an owner.  But if I open it up to investors (I don't know how I'd do that yet) I could sell shares of property and recoup my money ( times 3 per property) and still be left with a management fee of around $60 a property a month and guarantee a 6% return to investors.  I could theoretically sell shares of properties forever, just manage them for $60 a month/ property plus a 200% return on the properties.

Has anyone else done something like this?  I am trying to find the good and bad of this idea.  Could I start this without spending $20000 or more on lawyers?  Any advice or comment would be appreciated.