.: Quote from @Theo Hicks: In ideal conditions:Pref equity receives higher ongoing distributions but no profits at saleCommon equity receives lower distribution and profit at sale (assuming their is cash flow left over after pref equity is paid and assuming their is profit at sale.In non-ideal conditionsPref equity may receive ongoing distributions less than pref, or no ongoing distributions at all, but the pref accrues.

Hey Andy one of the keys to profitability as a landlord is quick turn over. if you where renting your unit out for $2,000 a month and waited 3 months to get someone in.

With a passion for finding undervalued properties and transforming them into profitable assets, they are eager to learn, grow, and build a successful real estate portfolio.

For traditional loans that rely on personal income and DTI (Conv, govt), there is no requirement that the properties be profitable.

small profit Lessons learned?

It also puts your agent and lender in a tough spot where it could be a perceived "fraud for profit" and they could lose their license and face time/penalties if they knowingly cooperate.

Ok so this would be profitable for a potential investor if you seller financed.

Would I pay for all the remodel expenses and then 50/50 split of profits or does contractor pay remodel cost?

I know a lot of folks that started with 1 or 2 properties that they bought from A turnkey rental seller and then went on their own, after all, purchasing and owning A rental property is the real experience it is far more hands on then any course your listen or video youll ever watch, so for someone that has the funds and is eager to learn the real way, and is okay to not make his full top profit of their first few investment properties it would be an idea for them to start with A turnkey seller.But as mentioned here, it definitely comes with A certain price tag, although for some starters they can pay up even more when they start on their own, and with A turnkey seller they'll actually save money.It all depends on the investors capabilities, experience, guts, funds avail, time (if you got they full time job besides real estate) etc...

I have found a few deals on the market lately for some clients that flip, the numbers still gave the flipper a profit and the rehab time was 5 weeks.