Structure a lease-option deal to protect your credit and ensure a good payment history.

Of course you are going to "keep the cashflow" after paying the interest, because your "investors" don't own the property, in this structure.  

Preferred equity is often structured to resemble a loan in that it provides fixed payments and a return of capital, rather than a share of profits, which could reduce its exposure to UBIT.

of course my goal is to structure it as an investment.  

This is the perfect example.We have been using the leses and other froms from WLB for over a decade and I have seen them getting updated over the years, so I somtimes throw out a package of forms and order new ones to be up to date, but they are so inexpensive, its a no brainer.WLB has a store downtown Milwaukee worth visiting: they have all sorts of landlord supplies you did not even know you needed from print all the way to parking signs and traffic cones.

Our first of hopefully many.The cash flow when occupied will be in the neighborhood of $3500 to 4K with an 85% occupancy.How would you structure the payout?

Partner Driven utilized its expertise in deal structuring and the local market to flip the property quickly at a higher price point, demonstrating our ability to maximize profits without heavy investment.

You can also structure the lease so that it comes to an end in spring/summer months when units tend to fill quicker and rents are up but I always make them more than 12 month leases. 

The market will control a much larger part.And for a specific take away, ask how the fees, waterfall, overall structure of deals have changed overtime.  

I am learning a lot from BP on how to set up a property management system to begin learning the proper way to structure a rental property portfolio.