In this market i would only go that route if you have the resources to cover their initial investment so there would be no loss of capital if things go bad.One of the syndications that i am an LP buys MF, rehabs the existing units, converts tbe garages into max number of studios, brings all units to top of market rent, and exits with max NOI.  

Given that affordable housing is a national issue it seems that the more pathways to home ownership is a good thing.

A friend of mine invested in one last year—apartments upstairs, a small coffee shop downstairs - and the combination of income streams made it a steady performer.Scaling with a 1031 Exchange:While not applicable unless you sell a property, planning for a 1031 exchange could help you scale quickly while avoiding capital gains taxes.

@Jonathan Greene I'm not sure what you mean by "most will not cash flow as an out-of-country investor" as it might suggest that the cash-flow of a given property has something to do with the nationality or residence of the owner but, in any case, you're absolutely correct that, historically, the net rental yields of LTRs in US cash-flow markets like the Mid-West have been typically higher than in the average European market, although that wouldn't be the case for many other US markets like California or New York.

There simply isn't enough margin in this business to layer on a national company, without charging you an arm and a leg and/or doing a substandard job.

If Costa Rica gives more capital gains like you suggest (which I doubt given how pricey it already is), he's going to get them with his own property and he'll ba able to take advantage of it without needing anybody's consent.I think the question is whether you can lure a lifestyle buyer into seeing it as a better opportunity than if he'd own his own property. 

Spread your capital over 2 or 3 deals, 2 or 3 operators.

I would just cap it generously to only catch abusers and figure the normal running costs in your rent. 

Jaedon, that’s a question I’ve seen stir up a lot of debate, especially these days when the cost of capital and property prices can feel like they’re arm-wrestling over who goes higher.

If he rents it out for 5 years, he now has to pay capital gains tax on that $300K (and any subsequent appreciation).