It was I believe 3k to sign up and then the cost to set up the LLCs for me was I believe $700, that partially depends on your state.

My GUESS is these homeowners have been tricked/screwed in to signing a long term power purchase agreement, often with no buy out provision.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

Seems like it's in a lower end area so if it is filled you will have tenant issues and turnover cost.

I am summarizing all of this and may be missing details.Extreme cost cutting mode is what Jorge opened up with.

We drafted an addendum to the contract and the sellers signed it to add the extra parcels in for no extra cost!! 

When they sign the lease, it is one of the five key points highlighted on the first page that they have to initial.

Look up the default risk by credit score, this information is readily available online. 

Try to “buy” a discounted rate with a chunk of cash up front?

A friend of mine in Austin once negotiated a partial buy back option when the seller realized they might want back in if the market soared.. from what I read in Bloomberg, that approach can work well if both sides trust each other.If the tenants’ rent covers your carrying costs, that’s a nice cushion, but you still need to clarify that buy back clause.