Now, if you’ve never done this type of development before, let me fill you in: you have to identify and (the jurisdiction will) relocate any human remains before proceeding with construction.

@Sean KirkThere are turnkey REI opportunities in different markets - markets in the Midwest and Southeast of the country are great - where not only are the purchase prices reasonable for most RE investors, but the homes are turnkey (new builds or completely rehabbed homes, tenant ready, systems 10 years of life remaining on them, property management teams in place) with appreciating home value AND appreciating rent.

@Jack Mi: my first impression is anyone that is buying a deal at a 4.5% going-in cap rate with 7% interest rate is anything by conservative.Now, there are so many details missing that it is impossible to give any true thoughts.The things I like:No up front fees, so less motivation to simply transact10% Co-invest is pretty good80/20 (assuming there is no second hurdle) is fairly good.Things that give me pause, based on what is actually presented:Going-in cap rate is very slim.  

Meanwhile, the buyer remained patient, saying he was willing to wait.

If you had a real buyer lined up and were adding value to the transaction by connecting them to the motivated seller, then that would be different.

That's kind of irrelevent now...the fact remains that she did show the homes to you.

She would pay the remaining time she has left, and we would start the rent ready upon move out.

I bought my stuff cheap for cash, most over a decade ago.We still find distressed properties and motivated sellers willing to get rid of unwanted properties cheap that we fix up and rent out.I also use cash from my self directed IRA to also buy properties for cheap.

My goal is to acquire multiple properties in a given market over the next few years and remain active in that market as long as the market still makes sense...

Hello Mathew, when you purchase properties, are they free and clear of mortgages, if not, what do you do about the remaining balance?