The proposed transaction is entirely off-limits per the tax code.

@Chris Connolly I always encourage people to get 4-5 bid proposals from managers. 

Hey Adam- your proposed strategy is exactly how I've built my portfolio.

I think interviewing them both is a great idea, my pm is putting together a proposal for us to look at his strategy to sell.

I am currently weighing the potential decisions on how to move forward against each other: 1)Accept the $50 less than posted and place a tenant that met all screening criteria.2)put the home back on the market for the listing price and risk vacancy.3) propose that we agree on a rent in between, which would be $25 less than the original listing price. 

But to propose to a management company, who you don't know and they don't know you, that they make a financial investment in your first deal and get an equity stake just seem beneficial to either side. 

@Chris Jensen Well, here is the proposal he has come up with. 

So I ran the numbers on the place we are renting through the Rehab 70% rule and BRRRR calculators (using my free trials) and every which way I sliced it, I would have to propose that the Owners sell it to us barely more than what I believe they bought it for in the mid-2000s.

I do realize using historical returns to predict future returns has some risk but you are not proposing placing a large amount into an investment all at once. 

What is the time frame in the proposal ?