Again, others might feel differently here.3) property level due diligence: (takes seconds to weeks per deal): here is where I drill in with the low-level details.a) pro forma popping: I examine all the assumptions, and see if they are overoptimistic or not.

They offered to provide projections or a pro-forma.

It should include a few exhibits attached like a scope of work, a blank change order form, a final layout illustration, and a lien waiver (for the final payout) that they sign before starting.

Also most townhome developments are part of some sort of HOA and if there is an HOA they will definitely not allow you to form a condo within the bounds of their HOAFeel free to reach out if you have more questions!

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Something that confuses a lot of people is they think these calls from companies are a form a rental arbitrage.

Our best use for the property would be to build a couple of large estate home (8k sq' and up) and form a private estate, but, being that we are in the County with no existing zoning requirements, we could also build what we want and potentially turn it into an income generating property.

Good to hear... i'm factoring in an 8% vacancy rate in my per forma, hopefully will accommodate any loss expected .

So many people gloss over properties before truly evaluating their pro forma rent.Also, I think it's a great point about this strategy working in higher rent/gentrification areas of Chicago..it seems counterintuitive.

@Patrick Shawn Faherty there's certainly enough feedback on this forum that anyone should be able to make an informed decision about MI, When evaluating any turn key companies, there are the things one should look for.In general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value)Don't allow for your own independent property inspectionAre not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors)Require you to pay for any renovation upfrontSell only in cheap. low end neighborhoodsDon't accurately represent the neighborhood/property classificationDon't have consistent rehab standards for all propertiesDon't provide a scope of work for the propertyCan't provide references of repeat investors Require you to close before a tenant is in place