@Stetson Oates, Thanks, and you are right, market conditions would limit how much of the initial funds one would be able to withdraw.I should also add that, while I am not an accountant or tax professional, it appears that at no time in the strategy above would one trigger a taxable event, since you're not selling any stocks or property. 

View report*This link comes directly from our calculators, based on information input by the member who posted.Good early morning!

Normally when you hear cap rates this high the expenses are not calculated correctly or certain expenses are omitted (no vacancy loss, no management fee, light on repairs etc). 

(Another option to the above scenario is to instead have the LLC lend my father money to complete the rehab so all the repairs are made in his name...but then the LLC would get no tax deductions on the rehab, plus my father would wind up paying interest on the loan and the LLC would incur taxable income on the interest of the loan as well.)I've said a lot here, but It would be greatly appreciated if anyone can give me advice on the best strategy to pursue...Thanks!

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

We also don't know the exact numbers of your prospective rental investment (including taxes, insurance, PM fees, etc.).Once you know all of those things, calculating this shouldn't be a huge task.If I had to ballpark it you'd be cash flowing perhaps $800-$1,000/month on the duplex given the rental amounts you ball parked.

Considering that DSCR  = NOI / Debt Service and NOI = Gross income less operating expensesWhen institutions are looking at operating expenses for a new purchase, how are they calculated?  

You want to make sure it will not be a taxable event.

You want an LLC for ease of administration, trusts are kind of annoying as they can act as their own taxable vehicles as opposed to single-member or pass-through entities that an LLC can provide.

I've ran about 30 properties through the BP rental calculator, even if i renovate the basements I'm always coming up 400-1000 dollars short of breaking even.