I would be picking up part of the cost to fuel that investment since I would be living there.

Maybe your expenses will get covered by the other rents, but unlikely you’ll have excess cash.

BUT any raise I get, excess money from the kids moving from private school to public school when they hit kindergarten and other “found money” goes straight into a rental down payment fund.

So excessive water usage is a double edge sword.

If you had them drafted by an attorney (probably not since it's at usurious interest rates but you never know), there could be a provision in there for what happens if the loan is deemed to be usurious (i.e. interest rate gets automatically reduced to lawful rate and excessive interest collected gets applied towards unpaid balance of principal). 

@Brent Coombs  Absolutely using sold comps, maybe to the point of excess sometimes...

this creates huge fuel load

Can't wait and hear the podcast you participated in.As a newbie I have some concern about entering the market at this stage, but reading posts such as this give me fuel to keep going.Benny

So it's not like Turnkey is pain-free, you have to do the work and know how to avoid being taken for a ride, like pretty much any big financial decision in life.I am always happy to provide info to new investors, as it fuels my BP addiction anyway ;) But before you or your friend make any decisions, it's crucial to have a serious heart to heart about what the goals are for the investment and what your needs are with regard to time commitment, risk, and control (do you need to be near the property, do you need to be in charge of tenants?).

When combined with the appropriate use of leverage, you can supercharge your returns in excess of 20% right here in the local market.