Hey Hey @Mario Morales - @Sarita Scherpereel pointed out some really good questions you need to ask your friend...You have to consider the difference between a non-conforming and an illegal unit.  

***To ALL my RE friends, lenders, wholesalers, closing attorneys etc (Metro Atlanta so far)***If you have ANY current or past deals with any of these names, let me know! 

There are a lot of active users in Houston that you should be able to connect with and meet at local meetups if you don't know them already from your experience.

In today's world you need to be about 28-35% down on properties to be gross cash flow positive, closer to 40-42% to be truly net cash flow positive(i.e 50% of your income goes to maintaining the property, other 50% is actually profit).My recommendation is to buy ideally a 4/3 SFR that's a starter-friendly one in a good area, and rent it out by the room.

The seller will most likely ask their friends and/or family about it.

This is more person and human friendly and good for newer investors who want to build locally.

Maybe they give up partial interest in the property or convince a family or friend to help them because otherwise they will literally lose the property.  

I invested with friends so the lost some money but it is enough for me to scare about this game.

@Karl Kauper Sadly MA is a very tenant friendly state. 

@Fiona Layne-GerminBeginner-friendly strategies for building long-term wealth include house hacking, buy and hold rentals, BRRRR Method, real estate syndicatations, rent-by-the-room strategy, short-term or mid-term rentals, and partnering with experienced investors.