The other issue is the time and energy it takes to sort this out if you end up being reassessed (some people never have it happen.)  

Worst of the worst, deliver pizzas at night and weekends, or driver Uber or DoorDash. 

It's probably the worst way to get started for most people and requires money for marketing to even make a dent.

It all depends on what sort of deal you are thinking.  

In your case, that would still be some sort of commercial loan.For first timers, HML will usually charge 10% or more interest plus 1-2 points as I understand. 

Clay tile is the worst.

15.3% Self-employment taxes is a lot.Scenario 1 - You do a cost segregation study in year 1 and create a huge loss to offset your other income, great for year 1.Horrible for years after 1 as you used up a majority of your depreciation and now your net income will be subject to 15.3%.If your depreciation is mostly used up and don't plan to have net income, your business is not profitable.Scenario 2 - No cost segregation study is done and your depreciation is calculated over 39 years(low depreciation rate, you will likely be paying some sort of net income subject to 15.3%.Maybe not in year 1 if you have a lot of furnishings installed.

Is it possible to get get someone with some experience in these types of developments on as a partner of some sort?

These properties are currently being rented for a great amount with great cash flow.Most of the time, these properties are not in the worst condition, but they are not new either (I think about $10-20K in repairs needed) or even properties that have great tenants paying great rent in them.Now, if I analyze the MAO with the standard calculation (ARV * 0.7 - repairs - fee), it won't make sense for the seller, and he won't sell it (found out the hard way haha).What do you guys do in that situation?

Hello, I think it’s really awesome that you’re just now beginning and you are already coming to the forums to learn so the first thing you need to do is to continue to stay on the forms and you also need to be reading all of the bigger pocketbook and start listening to their podcast to soak up as much knowledge as you can and as long as you do that, you will have all the knowledge you need to start and regarding your question I do not advise to buy a single-family house just to live in it without a rental property aspect so it’s OK if you want to live in the house as well but you will have to either get a multifamily property or you could also buy a single-family home and rent out the other rooms  now see when you have a property that you use just for your family then you have to pay the mortgage every month which is building your equity, but that responsibility is solely on you whereas if it has some sort of rental property aspect, there will be other people helping you build that equity if you were to buy a property just for yourself that is something that will be taking money out of your pocket every month while as a rental property if you buy right will be putting money in your pocket every month the only exception to what I just said is if you buy a property for yourself or just for your family to live in, you could do a live-in flip to where as you’re living in the property you rehab it while your living there and if you buy right with enough knowledge, then when you turn around to sell the property, you will make profit