If you can finance an entire deal that way, it does give you the potential to buy out the preferred equity and own the entire deal yourself within maybe 3 years.I think preferred equity is easier to raise in today's climate. 

I know it gets easier with your 5th or 10th deal, but I'm talking about my first one here!  

If that isn't feasible for his situation I'd recommend looking for rentals in the southern/middle part of the country where price points are much easier and the laws are landlord friendly.

Also you have to constantly look for customers and you competing with highly competitive hard money lenders.Lendng under $50k is great idea because most HML don't do loans less then 100k.So I found that traditional real estate is much more passive and easier but I still be interested in private lending on a deal to deal basis I such deal falls into my inbox and it passes all check and balances. 

Working with a property management company can make the whole process easier and more efficient.Good luck!

Networking with others who share your goals will be crucial, but having that firsthand experience will make scaling much easier.

All you have to do is go out of town and as long as you can drive there and not have to fly things are a LOT easier!

You must work at least 750 hours per year in a qualified RE business.So most people who have high-earning W-2 jobs outside of real estate won't qualify.But the unique thing about RE pro status is that even if you don’t qualify but your spouse does, you can both file jointly and claim the losses from your RE investments to offset your other active income together.It's an incredibly powerful benefit if you do meet the criteria.

Your insights were incredibly helpful and have given me a new perspective on the process.I appreciate the time you took to explain your approach, and I’m excited to apply some of your tips to my own investments.Thanks again for being so generous with your knowledge!

Being able to accept a family in a program into a nice, renovated, and well cared for unit is an incredible feeling.