The disadvantage is that they won't provide legal advice, but if you are simply looking for the entity formation piece at an affordable rate, it might be a good option.

There might also be some other tax disadvantages that I’m not aware of.

But I see the advantages or disadvantages I should say of a landlord not provide some or all of the appliances.

What are your opinions on the advantages and disadvantages of buying multi family homes versus more passive investments like REITS?

There are a few advantages, but some disadvantages as well.

I believe there are more advantages than disadvantages. 

There are some advantages and disadvantages to each situation.

The disadvantage is some tenants don't like the variable costs.

I have about $40-60k cash that i could use but would prefer not to drain it all.The problems that I am encountering are:- most multi family are being sold quick and above asking price (super competitive due to low supply and strong market)- I cannot provide an all cash offer which puts me at a disadvantage-I'd like to purchase a home that i can put some sweat equity but it would be hard to qualify and FHA loan for that type of home and i don't have the capital for 25% on 400k = $100kMy proposed solution:- Have a family member (lets call him Bob) use their HELOC to buy the home with cash- Then have him sell the home to meMy questions are:1.

Since both have their advantages and disadvantages, this gives me the best of both worlds.