@John BerjIf cash flow is a top priority, factor in HOA fees (common with new builds) and confirm rent comps to ensure the numbers work.

This is probably a question for your personal CPA or if you don't have one, paying a consultation fee to a Real Estate centered CPA would be a good investment. 

@Paul Shannon Great job asking about the fee structure.

.$24K in soft costs (permits impact fees etc)$200K (or less) buildout of the house (size tbd on after-build-appraisal) Likely going with 2/2 A frame 1000 sf.

Example Plywood is the same price as the US, but add on Freight and about 50% import tariff. 

The only thing that I see missing if they are purchasing with hard money debt they may want to factor in 3% - 5% for closing costs (points, fees, title, etc) Thx Zachary!

I understand that rents will go up over time and my mortgage payment will pay down the principal, but it seems like investing the $1.43mil into rental properties and/or a low fee US stock market fund may work out better for me. 

I have not reviewed BAM's fees but it's likely based on their representation of UNDER 10% "skin in the game" that most of their "investment" is taken from fees deducted from the money gamblers place with them and counted as equity in the deal; this is a common practice in the syndication industry. 

Hey @Keenan Patton,This deal looks solid with a projected $60K profit, $435K ARV, and a $13K assignment fee in Northern California.

If the higher end rent prices on comparable units take an extra month to fill the vacancy and also the tenant stays 1-2 years instead of 3-4 years on average those landlord make LESS income charging that rental price ESPECIALLY if they pay a PM a placement fee upon turnover on top.