.$30,000 in the bank for investing <--- I would prefer to not max this out though.Credit score >800Debt obligation/month $700 plus $1450 PITIAnnual Income before tax - $50,000Short term Goals: To generate $2,000 residual cashflow per month in the next 4-5 years so that I can put my baby girl into a good school and have a little extra cash for trips/breathing room.

I started thinking about what would be residual income and real estate and I really focused in on what would replace my very good paying W-2 job.

Residual income and build wealth.

Just because someone else either overpaid for their acquisition or paid an appropriate price for another property doesn’t mean that price is the right one for yours.The best and therefore the most logical method to use is to run a residual analysis.This is done by establishing the full market value of the project you intend to build on the property and deducting everything from it BUT the land.Start with commissions and closing costs and include a target development profit along with site, hard and soft costs.The remaining figure is the land value your project can support.Message me and I will send you a worksheet that performs this analysis.

I dont understand it honestly, but all in all he moved out and left an apartment in crisp condition, well... maybe with exception of plate with cocaine residues and insurance card to chop the lines, I did spend 175$ on a lawyer and I think that money was well spent.

They do not want to be involved in the searching, acquiring, remodeling, or managing- they just want to do something with some extra money they have and earn some greater interest or residual income.We are a bit confused as to how to structure these partnerships and what would be fair and desirable depending on if they want to run it as a loan vs. partnering with a multi-unit apartment and sharing the residuals.

@Michael Ganovski Michael, one of the most effective ways to determine land value is to do a residual analysis.This is done by establishing the Market rate / price point for the sale and or income the finished project can generate.

Any idea how that will work with some of the residue from the old floor still on the maple?

The ceiling in the bathroom was full of meth residue and there was smoking and cooking paraphernalia and sex toys and porn mags all over the house. 

Housefire smoke/residue is nasty.