This is my first investment property.Proposed agreement:(1) Start at equity split 75% Me | 25% Mike Gives Mike an extra 5% equity from the start for his experience and the initial arrangements he made with agents and inspector(2) Stay at 75/25 split until 75% equity gives me at least the 80% initial amount I put in e.g.

---sigh---There's reasons PMC's don't like to run boarding houses.1) Most municipalities don't allow them2) They don't work in every area3) Owners won't pay enough to compensate for the extra tenant headachesEvery owner only wants to pay based upon everything going smoothly. 

If you increase the deposits, come up with a payment plan again realizing that many people are stretched thin and won't have extra to cover increased rent and more security deposit.How long have the tenants been there and what condition are their units in? 

Also, the little extras are worth it!  

LLC vesting is costly to register annually and file extra tax returns. 

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

If you're increasing your P&I by $200 you're still doing well cashflow wise and now you have an extra $40k to purchase more properties that will also cashflow.

So will need to find yourself a good GC.If you wanted to get into BRRR instead of going FHA each time you can possibly consider hard money then go to the bank if the deal has good equity and refi out without any extra money out of your pocket.

Meaning, we expected the appraised value to be high enough, that we could take a loan out that would both cover our hard money loan (purchase and rehab costs) AND take some extra cash out.

They can also add in extra expenses that you do not have added in like snow removal or landscaping.