See item #3 for where I think much of the shortfall is.3) Somewhat related to item #2, I filled out a spread sheet to determine cap expense numbers and what I determined is that investors in small number of unit dwellings are virtually universally under estimating cap expenses.  

Remember that the city officials, inspectors etc. all have one thing in common, they are human, have to put one pant leg on at a time and only have 24 hours a day to do this.  

Tom Herman I am not a CPA,but I am pretty sure you cannot buy a residential dwelling and right it off as a business expense.

This, of course, doesn't replace the accountability and human spirit of a coach or mentor, and perhaps therein lies their greatest value.

This class includes any property that is a rental building or structure (including a mobile home) for which 80% or more of the gross rental income for the tax year is from dwelling units.

I will be responsible for securing the debt, finding the contractor, performing the work and getting the units rent ready as fast as humanly possible.That being said, I just want each of us to make an equal investment, receive equal cash flow, capture equal equity at exit and maybe add an equity sweetner at the end for the other partners who are teaming up with me for the first time. 

Also, do those who buy a property then build an adjacent dwelling need to consult an attorney before doing so to make sure the structure is legal?

We are all human but this guy was on another playing field.

Granted, it's a lot cleaner deal if you go through them and, personally, I feel guilty buying an occupied dwelling at a tax sale, but still, plenty of folks do it, so I was just wondering. 

Now I'm an evil landlord who should work for free because housing is a human right.