When combined with the appropriate use of leverage, you can supercharge your returns in excess of 20% right here in the local market.  

So in all cases but one the spread is greater than 3%, and in that case (using higher-interest bridge debt) we plan to refinance into lower cost debt by year 3 which will then create a spread in excess of 3%.Unfortunately buying commercial income property (includes multifamily) requires very sophisticated financial analysis and there are no shortcuts or rules of thumb that will give you the complete picture. 

You'll likely end up loosing money running around in circles.

Once you get your 5+ unit, then you could form your LLC (if you haven't done so already) and buy it under the LLC, let it season and then turn around and refinance your earlier properties down the the road into the LLC, at that point you would have more to loose (more properties) and it may be a smart idea then.

The room is vacant since then and I am already loosing a month's rent. 

Then eventually the excess cash flow can be distributed.How should I structure the deal with the family member? 

What I've loosely gathered is below, can anyone tell me if these figures are in the ballpark?

And although our numbers are up, it still takes an excessive amount of work to find these opportunities on a consistent basis.Anytime I'm in a rut in my quest for deals, I always remember that thing my parents told me, that so many other kids heard from their parents growing up too: "It's not what you know, it's who you know."

Tell the owner he appears to be right about loosing the property in a bankruptcy but the new owner has left the  the title to the property in a mess and you'd like his help clearing it up. 

For instance, if I stashed away 10% of the property value or a certain fixed amount in the account, can I then start diverting funds to a general account and snowballing the excess funds onto individual properties or as personal income?