At those costs it would take me about 12 years to break even if there were no other expenses for either unit during that 12 year period.

There is low vacancy rates, guaranteed rent, and they stay for a longer period.

Thats another key factor to be able to pull out your initial capital and the next homes DP in a shorter period of time. 

I ran the numbers for any investment below 250k and for the 3 year hold period after 1% annual management fee and 1.25% startup fee, and the profit split, comes to 10% compounded return or an 11.2% avg annual return on a 1.33 EQM on 3 years.

DEAL BREAKDOWNEMD: $50,000Sub-To (with a 3-year balloon): Mortgage takeover is $5,900/month.Purchase Price: Agreed upon variable price for 3 year period.

@Robin CastilloLLCs are useful for legal protection, but they require separate tax filing, typically cost several hundred dollars to create, and most non-commercial lenders will not lend to LLCs.Commercial lenders will lend to LLCs, but their interest rates are significantly higher and they require collateral that regular lenders don't.I would not create a LLC specifically due to the issues in getting a traditional mortgage it will likely cause.One potential route though, is to get a traditional mortgage in your name and then assume the loan after a 6mo "seasoning" period with your LLC.

Don't forget RE isn't a 3 year hold...10 years (less with other benefits from above included) is not a long period of time with a physical asset.

If you anticipate challenges, it might be strategic to wait until closer to the 90-day notice period required by law.

There is no 30 day close with a 21 day inspection period haha 

Former Lifestyles trainer Steve Davis has started this and has some Dallas trainings and meetings periodically.