If you have an LLC, it and your partner can be the two members of this entity.Some examples for comparison...6 month 70% DealARV 400kPurchase+Rehab = 280kPrivate Lender @ 15%Private Lender brings 280k to cover purchase+rehabPrivate Lender brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 monthsAssuming 8% of ARV covers commissions and closing costs, you're left with 368k You owe your private lender 290k for purchase, rehab, acquisition costs, and holding costsYou owe your private lender 22k in interest (15% for 6 months = 290k * 0.075 = 21.75k)You're left with 56k (14% ARV)Hard Money + Partner where HML requires 20% down and charges 12% and 4 pointsHML brings 224k to cover 80% purchase+rehabPartner brings 56k to cover 20% purchase+rehabPartner brings 22k to cover 10% of 224k HML (12/4 @ 6 months = 10%)Partner brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 monthsIn total, Partner has brought 88k to the dealAssuming 8% of ARV covers commissions and closing costs, you're left with 368kYou owe your HML 224kYou owe your Partner 88kYou're left with 56k to split with your PartnerAssuming a 50/50 split, you both get 28kYour Partner makes 64% return (6 months for 28k for 88k)You make 7% ARV (28/400)Hard Money + Partner where HML requires 10% down and charges 10% and 2 pointsHML brings 252k to cover 90% purchase+rehabPartner brings 28k to cover 10% purchase+rehabPartner brings 18k to cover 7% of 252k HML (10/2 @ 6 months = 7%)Partner brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 monthsIn total, Partner has brought 56k to the dealAssuming 8% of ARV covers commissions and closing costs, you're left with 368kYou owe your HML 252kYou owe your Partner 56kYou're left with 60k to split with your PartnerAssuming a 50/50 split, you both get 30kYour Partner makes 107% return (6 months for 30k for 56k)You make 7.5% ARV (30/400)6 month 80% DealARV 400kPurchase+Rehab = 320k Private Lender @ 15% Private Lender brings 320k to cover purchase+rehab Private Lender brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 months Assuming 8% of ARV covers commissions and closing costs, you're left with 368k You owe your private lender 330k for purchase, rehab, acquisition costs, and holding costs You owe your private lender 25k in interest (15% for 6 months = 330k * 0.075 = 24.75k) You're left with 13k (3.25% ARV)Hard Money + Partner where HML requires 20% down and charges 12% and 4 pointsHML brings 256k to cover 80% purchase+rehabPartner brings 64k to cover 20% purchase+rehabPartner brings 26k to cover 10% of 256k HML (12/4 @ 6 months = 10%)Partner brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 monthsIn total, Partner has brought 100k to the dealAssuming 8% of ARV covers commissions and closing costs, you're left with 368kYou owe your HML 256kYou owe your Partner 100kYou're left with 12k to split with your PartnerAssuming a 50/50 split, you both get 6kYour Partner makes 12% return (6 months for 6k for 100k)You make 1.5% ARV (6/400)Hard Money + Partner where HML requires 10% down and charges 10% and 2 points HML brings 288k to cover 90% purchase+rehabPartner brings 32k to cover 10% purchase+rehabPartner brings 20k to cover 7% of 288k HML (10/2 @ 6 months = 7%)Partner brings 10k to cover acquisition costs + utilities, taxes, and insurance for 6 months In total, Partner has brought 62k to the dealAssuming 8% of ARV covers commissions and closing costs, you're left with 368k You owe your HML 288kYou owe your Partner 62kYou're left with 18k to split with your PartnerAssuming a 50/50 split, you both get 9kYour Partner makes 29% return (6 months for 9k for 62k)You make 2.25% ARV (9/400)TakeawaysThe 70% ARV rule is popular for a reason.  

@Daniel ShowmanReal estate is a very popular alternative investment holding in both IRAs and solo 401(k) plans. 

Once stocks become popular and liquid enough their correlation with each other really starts to steepen.I keep just enough reserves to cover worst-case scenarios with my RE holdings and they're held through a mixture of diversified assets. 

I am in the same situation where I live and I just searched apartment floor plans on the net and found what I thought would go well here and be popular convenient layouts for tenants.

IHDA (Illinois Program) has a few options, but most popular DPA program provides a grant up to 5% of the purchase price ($7,500 cap). 

We sell those investment properties all of the time and they are very popular for out of town investors.

If you want REAL rate of return/cash on cash, look outside of the typical areas.PS, a lot of the areas that are becoming popular/gentrified and hot topics now are just as crime-ridddn as areas that are completely ignored.

Or maybe with the popularity of HGTV and other shows, people have unrealistic perspectives on the depth of what rehab work requires.

I ask because one of the most popular ways of diming yourself out is to change the named insured to the LLC.

Parma is a popular suburb for SFR/MFR on the west side close to you.