I just did the same thing, borrowing from a family member.   I

You have no cash reserve, and would even be relying on the cash flow for other purposes.  

What I see from the OP is that "Rockstar Realty LLC" is sending letters out trying to "buy" property and the LLC member is a (former) broker with an expired license.

If so, that shouldn't be nearly as much and maybe you would be able to save and/or borrow a smaller amount from a friend/family member? I

Second, they tend to be relying on cash flow from their real estate investments to fund their current lifestyle.

According to the zoning doc that @Joshua McGinnis posted, any number people over 5 in a single family dwelling (that aren't related) requires it to be re-zoned as a boarding house, and if there are more than 6 "guest rooms", as a hotel.

As a Seller, you would be relying on your counter-parties lack of understanding of this asset class, a.k.a. stupidity for no better word, to garner a sale remotely close to par or even the standard SF paper discount.

The other thing, putting things in writing can be relied upon as a representation for the investment, you certainly don't want to go there!

Welcome from a fellow Kansas City member. I

@Jessica Sorensen  Hello to a fellow new BP member. I