If it doesn't, well, welcome to financing for non-warrantable condos. 

A $1200 rent on a decent $125k house doesn't warrant removal or new drywall.  

 @Christian Carson @Wayne Brooks  @J ScottAlthough I usually don't find sufficient margins at auctions to warrant going that route for properties, I did find this discussion interesting and would like to know if there is a legitimate issue here with what was described -- having the LLC buy the property then selling the LLC.

Sheriffs office said no warrants out for his arrest.  

She left Austin for Chicago 7 months ago and has not made the payments in all that time, there are warrants for her arrest and I doubt that she will ever come back.

My personal opinion, and I don't know the cost of operating an LLC in your state, but it depends on he type of property that you are renting- if his an 8-plex with lots of potential problems that is ripe for a lawsuit, buy all the insurance that you can and transfer it into an LLC, but if these are SFRs, the risk is not high enough to warrant the cost of the LLC.

When we bought our first duplex years ago we got a home inspection. 2 weeks later we had to replace the water value connection to the house Home inspections only warrant what they can see.

Others might be really nice areas but perhaps the profit margin isn't high enough to warrant the project.

This is usually an LLC with an operating agreement, but can sometimes just be a joint venture.The PPM is mainly for taking solicited funds and deals that warrant the expense that goes along with them. 

So If I can give this investor a passive stream of income (10% preferred interest) and solid appreciation, all secured by a hard asset, then it seems like a 50/50 split would be warranted.