This structure explains why institutional players dominate - they likely have the capital, connections, and infrastructure to operate effectively in such an environment.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

ADUs can be extremely difficult to structure since they are usually on the same parcel/parcel number.  

This are the numbers:25 unitsAsking price 1.5MI will offer 1M $11,780 monthly rent income$13,000 annual expenseYes, the expense ratio is low but it's because it's in the island where we do not have property tax, insurance is for liability around 2k a year and it's all concrete structures. 

As you grow, there are an unlimited amount of variables that can be introduced into the deal structure.

Does any one have experience with alternate pay structures?

I would love to hear the experience you had with your duplex and to find out the lease structure for leasing to a corporation that serves as guarantor (if that is how you did it.)

Are you structuring this as a partnership with the seller?"

But if you go that way try and structure it for what works best for you.

However, navigating the legal and financial complexities of Subto deals requires careful attention, so I’d recommend working with a real estate attorney to ensure everything is structured correctly.Securing private money for the closing is a smart move, but ensure your terms allow for flexibility in case of unexpected repairs or delays in cash flow.