Does my plan sound solid/what would you adjust?

[Matt McConkey]

Good Day BP, 

My name is Matt and I'm wanting to add another rental to our (very small) portfolio and was hoping I could get some sage advice. Below is my plan. 

ABOUT US

My wife and I have been wholesaling properties virtually for the past three years. We also invest with Holdfolio and have one rental property. We are ready to add another rental to our portfolio and since this is a bit out of our "norm", I was hoping you could shed some light and see if there are any flaws in the plan. 

LOCATION 

We are actively looking to purchase a duplex/tri-plex/quadplex in Springfield, Illinois. My hometown. I know the good/bad areas by the address. I feel comfortable putting money/time and effort there. It's not great for appreciation, but good for cash flow. 

FINANCING

I have found a local credit union who will loan to an LLC created by me and my money partner (more to come). They will loan 80% and the loan will not reflect on my personal credit report, but they do want a personal guarantee. That's fine with me.

For the down payment, we don't have the 20%, but I have a family member who is willing to be the silent partner for the down payment and be on the loan as well.

THE DEAL

We don't have a deal under contract yet, but I have a local Realtor who has me on his automatic email for MLS deals that pop up. I analyze every one that comes and fits my criteria to see if it's a winner or not.

OPERATIONS 

I (think) I found a solid property management company to run things as I live in Arizona and my private money lender doesn't understand property management/nor do they want to deal with the hassle. Our agreement is they supply money and make money. 

For all intensive purposes, I will be the COO and they are the CFO. I will create an operating agreement that we file with our LLC and against the property to ensure if anything goes bad, we have recourse. But I will handle the banking, payments, everything.

Repairs, ETC. 

I have contacted two handymen and a contractor who can fulfill their work in a timely manner and be professional. They have been vetted by my Realtor and one other source. 

DIRECT MAIL 

I am considering doing a direct mail campaign to find an off market deal. I find SO many properties don't have split utilities and that's a deal breaker for me from the get go. Also, doing a direct mail campaign could net us more equity in the long run. 

MONETARY DISTRIBUTIONS

I plan on distributing either monthly or quarterly payments to the PML and me, after CapEx, taxes, payments, etc.

HOW IT WORKS

This won't be my first rodeo in the REI world, so I understand how to handle a rental remotely, how real estate investing works and what it takes to keep the ship afloat. But I feel like there are items I am missing and maybe if you could be so kind as to show me what's missing, I would greatly appreciate it!

Some Clear Questions: 

1) How will the PML get paid back their down payment? -- Haven't figured that out. 

2) What if one of us becomes incapacitated? -- Our operating agreement will handle that. 

I look forward to hearing from you!