Plug it all into a model and kick out a return.  

They're the new trend so too many operators will dive in, they'll hit a peak, and then we'll see units revert back to LTR's, owner-occupied units, or maybe some entirely new model we haven't discovered yet.

If that works for your business model, great.

maybe $12,000 - hard to create a business model with that volatility. 

@Christopher Benjamin  Here is a simplified version of my more elaborate yearly cash flow model you can start with.

All could have been prevented with an incentive based compensation model with a renewal commission. 

We launched some paid advertising, however the results were bad.About 6 weeks ago I started doing deeper research on his particular business model and I began putting the pieces together to help generate some leads and get him and my sister back to making money again.Fast forward to just over a week ago since I completed his setup, and so far he’s had 5 appointments to view job sites so he may submit bids, and he’s locked up 2 contracts worth $15,500 and $31,500 totaling $46,000 in new business.This case study serves to support any REI professionals seeking inbound leads including…

Contractors of all types (Roof, Foundation, Electrician, Plumbing, Painting, Etc...)


Again, you got to know where and WHY your investing there (make it about the numbers).... as any business model should be. 

I have created a detailed DCF model to analyze the investment and have stumbled across a couple of questions that I hope you guys can help me answer.

Model #1 you have one company that is responsible for your performance, and they can make investing truly passive.