I'm trying to buy, fix, and rent real estate and created an LLC with my partner who is putting up most of the capital but he will not handle operations at all.

We are currently in the final stages of an AI driven software that is going to essentially allow us to manage co-living properties effectively, without any of the staff or operations typically needed by rental properties.

For new prospective investors who have more money than time, I think this might be a better first investment than trying to be an out-of-state landlord.You do all of your vetting upfront—of the operator, the asset, the loan, and the area.

Your raise happens to be on the lower end of where such firms operate but certainly a plausible option assuming the investment thesis is sound & the GP checks out. 

Don't get ahead of yourself or buy a 2nd property or take on too much debt until you have a better idea of how to operate a rental property and how much it costs, or if being a REI is even for you. 

@Ryan Kline You either have a balance sheet we all envy or you are an individual who has no confidence in their ability to be a good real estate operator.

Do you guys operate in North Carolina?

We've already put together an LLA, and found a generic operating agreement online.

Also, this creates misalignment of interests as the deal unfolds.3) Check the details of the operating agreement.  

I now operate Iron Goat Home Services as a General Contractor/Handyman.