The operating LLC doesn't own any asset, just liquid cash that is rental income from tenant and expenses against rental properties.

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

I think my personal guideline will be 10 properties, or $2k in cash flow a month.

part of the brrrr process is renting it. get it rented for better rates. 75% max cash out using the new value. 

There thinking goes something like this - I can buy this great property for $5 million cash flowing $600k per year (they neglect expenses).  

Lot of crooks in this business.That being said, Abilene is a great town to flip or find properties that still cash flow. 

You are missing my point on taxes.Scenario 1:  Your partner buys the house at the same time you put your cash in.  

Specifically, I would encourage you to continue to seek local opportunities for equity growth as well as seeking out-of-state or upstate opportunities for cash-flow (i.e.

I have a reasonable amount of cash on hand, excellent credit, and low debt-to-income ratio.

Cash flowing markets, low taxes, landlord friendly and large demand in renters.