So most agents are only putting about half of that $12k in their pocket, and out of that $6k they have to cover all of their operating expenses: licensing fees, MLS/ Realtor Association fees, continuing education classes to stay compliant with licensing requirements, monthly "desk" fees/ technology fees to their brokerage, health insurance for themselves and their family, errors and omissions insurance (required), marketing, car, car insurance, gas, clothes, computer/ software, cell phone, closing gifts, signs, photography, staging if they offer that, etc.

Hey Robert - Condos and apartments can be a solid entry point due to lower purchase prices and potentially lower maintenance responsibilities, especially if the HOA covers exterior upkeep.

These templates cover various aspects of subcontracting, including responsibilities, materials, and liabilities3.

Quote from @Jason Seay: 3 bed 2 bath house. 

I would offer it on a land contract to someone wanting to live there for around 1500 and small down payment or sub2 with a large down payment and monthly that would cover PITI.

Your insurance may also not cover you or your tenants. 

You take a HELOC for your primary renovations at 7%, invest the funds from option 1 to cover the payments of the HELOC.

@David Rodriguez  The only thing I would add is a two bed might do better as a two bed rather than 1 plus office.

That's called a straw man argument.My only question is if property taxes are going to go up for the people of Pacific Palisades to cover the damage the People caused to the city.

They managed to cover the mortgage and still had a comfortable place for family vacations.