Duplex is a great first step into the REI market if you can buy one that you can put in a little TLC/renovations, you can quickly refinance in as little as 6 months and buy another property keeping it as a rental.Duplex allows you to use the other "Unit" rents to qualify for the loan or higher loan amount.Rent is a waste of money when you look at an amortization schedule and payoff based on a 5 year model your rental has (ZERO) equity and a home has money you can pull out.

With Tom controlling the escrow and our funds this should allow those in the business to just alter their business model accordingly and still be able to make money on these deals.  

I'm going to go against the grain here as I often seem to do...I personally hate the traditional turnkey model.

Thanks for your reply mate,Nobody is telling the little guy not to invest.I stressed what I think is a safer way of investing.If our turnkey model allowed leverage, we would have 10xed our business since 2014.I just don't believe in the model and me saying "all cash" is definitely not benefiting my company...To your example, the investor uses $100,000 to buy 4 properties at 90% LTV and a black swan event like Covid or interest rate hike happens and 3 go vacant and 2 need major turns.Then what?

Experience tends to come with less risk unless the syndicator is not above board and just wants to scale at all costs.Syndicators all have different models.

What was the business model?

Depends on your local rules and regulations, but in the state of Virginia such a practice is perfectly lawful.PS: Do not take model legal language and incorporate it into your contract unless such language comes from an attorney. 

There were a few important tactical and operational details in the single family business model that I either did not know or overlooked.

Re modelled almost the entire house before we moved in. 

If you are interested in the underwriting process and financial model for multifamily, I recently published an article on LinkedIn that breaks down the end-to-end process that we follow to determine the purchase price range for properties.