Long-term rentals have existed forever and are a proven investment vehicle.

I am leaning towards hiring an attorney for the peace of mind but I also want to make sure I’m not taken advantage of. 

I just started my due diligence phase, but the first thing I need to do is better understand the financial feasibility for the project, and how the return might compare to other investments we have undertaken in the past, which have been mostly acquiring existing buildings and renovating, not new construction.

The sub 70% projects are very sought after and usually do not exist on the MLS. 

Seems a lot can go wrong with this and I wanted to speak with existing investors and see what has gone wrong with this in the past and how have then fixed it.

I took a 2 bed 1 bath house and converted it into a 4 bed 2 bath within the existing floor plan (2200).

To answer your question about the downside or risks - there might be an existing or a possible lawsuit and you would need to be held liable for 50% of it.

Or you could use the equity in your existing property to fund a down payment.However, becoming more experienced in real estate investing is best before using leveraging to maximize gains.Alternative Options (Less Investment Required)Suppose you want to start investing in real estate but don’t have enough cash.

The ‘grey’ area that exists within the IRS code, relative to the All In One Loan product, is whether or not interest paid on indebtedness used for short-term living expenses is deductible, while the total acquisition indebtedness is being reduced (paid-down).

Subject-to Financing: Take over the seller’s existing mortgage payments while keeping the mortgage in the seller’s name.