I plugged in financing 20k (with 5k or 20% down) to a 15 year mortgage calculator with a 5.75% rate and your monthly debt servicing would be $166/month, leaving you with $109/month in positive cash flow.Now, it looks like the expenses you posted exceed 50%, so I would make sure you're using the real numbers and not pro forma ones, or call around for some quotes to lower those numbers.

Sorry for late response.10% cap rate was my forma figure as seller showed 0% vacancy rate.All utilities are paid by the tenants except trash and lawn care.I used around 6% on maintenance and repairs.I'm not sure what ESA is?

Either go in as a member being held harmless by him, or form a partnership and put the property in the newly formed LLC.I'm a little skidish too on the partner having the lack of funds, so you need to be in a position to sell with the least amount of issues.

You may want to check out some real estate pro formas to help you figure out the NOI and cap rate for this investment.

My plan is to initially start with flipping, but the overall goal is to form a full scale real estate company including boutique development (flipping, condo conversions, single home building, small condo infill buildings, etc) along with a property management company for buy and hold properties.

Pro-forma anyone?

Form a Ccorp and it just got worse.

Although I've seen some pretty questionable operating statements/pro forma NOI assumptions.

3 basic ways, put them on title with you, if they are a close family member the could do a note and deed of trust or you can form a partnership in an LLC and use the capital account as to the % of ownership of the assets.

My quad does a bit better than that most months however my pro-forma forecast has 50% rule in place (50% gross revenue will go towards expenses).