@Scott McMahan ARV is $60k, repairs 20-25K (wrote that incorrectly in original post), purchase price $4k, rents $700-800.

However that would be incorrect.

The example is correct but my typing about it was incorrect.

Tell me if I'm reading this incorrectly:1) I formed my LLC in March 2013.

@Dion DePaoliI stand corrected.Though I would probably designate that as a "complex" - though not offshore - structure which may not be cost-effective in this scenario ... but I could just as likely be incorrect here.

I suspect you are using some incorrect terms, specifically when you say that the owner sold his redemption rights to the investor, you probably mean he gave him a quit claim Deed.

Aside from the poor etiquette, and incorrect facts (it's not her lease on her room), a housemate wanting out of a lease at one of our student properties is an annual occurrence.

Bill GulleyBill actually your incorrect about my lending experience..

*Sorry Roy, realized I didn't look up at the OP Chris and named you incorrectly.

While I like Dion's explanations above, keep in mind that the term "ROI" is often used loosely (or flat out incorrectly).