Eliminate debt, establish a budget, and save.

Even if I entertained the idea of allowing a tenant to do work on a property, I would simply pay them for work completed and they could either receive payment or apply it to the rent.

I find saying you're doing it to "learn" is better received then "i'm doing it to save on costs" since they may get the feeling you're going to micromanage them and scrutinize the budget.

Doing a lot of research is critical, too—understanding the local market, the laws, and the best neighborhoods for your budget.

Quote from @Chris Seveney: @Jay HinrichsHey now :) (haha we have 700 investors)It can be done but you need a dedicated person to do it and make sure you budget for it - spending all your time raising $ for other deals and on the podcast circuit takes away focus.

2) When using other people's money to invest, what is the best way to set up an agreement on a limited budget?

When I build ground up with budgets north of $3M and have $500,000.00 of site work that will takes months to complete, are you saying I should be paying $1M to the GC upfront on day one?

This property in particular had some additional unforeseen costs (main water line damage, sewer line damage, etc.) that certainly caused us to go way over budget.

The inputs for the image in this screenshot are as follows:500k purchase price duplex.Rent each side for 2k/month (this is after you move out)5% down paymentClosing costs: 7k6.4% interest rateInsurance: $250/monthUtilities (paid by owner): $400/monthVacancy budgeting: 5% of monthly rentMaintenance budgeting: 8% of monthly rentCapEx budgeting: 7% of monthly rentEven though you are negative $312/month after budgeting for future expenses, your net worth ROI is massively positive.

The categories affecting most people's budgets.