@Yash Tamta you can make anything look good on paper!

Well, you make it absolutely clear that either the buyer OR seller can withdraw at any time, no one is obligated, until the final papers are signed.

That shows up as an on-paper loss on the K1 for our joint LLC, which then gets split up proportionately to individual K1s for each participating member.

You can invest in class D areas that on paper will show a high IRR of 20% but I would not touch it with a ten foot pole, but in same breath I would consider a 10% IRR where there is no leverage and low investment to value.

Make 90% of your errors on paper.  

I would send your client to a really great architect like Jones Pierce who has the expertise to get their dreams onto paper and properly manage the homebuilder. 

I don't think they do.... you don't want to buy something which is only nice on paper.

And, all commercial loans I've been privy to care much more about the DCSR than the paper value of the thing.Unless you're trying to save your first 4 conforming loans for other purposes, I'd first look at getting separate loans for each property from the same lender who's using conventional FNMA guidelines.

The cheap homes look good on paper, but cost a lot more as they often attract less desirable/more problematic tenants.

Adding...turn over and vacancy seem to be the big topics that BP doesn't discuss.SURE a C- property looks like a winner on paper. $800/mo for $40k is 2% rule, that's crazy!!!