Use the funds to buy 1 -2 LTR rentals cash or use a loan and get 3 - 5 LTR's.

Here are five dangerous provisions to watch for in an Operating Agreement:Dangerous Provisions to Watch:Authority to incur debt without investor approvalPower to make loans to other entities/projectsAbility to cross-collateralize with other propertiesPermission to use investor capital for other venturesCommingling of funds across different projectsWhy These Are Potential Ponzi Indicators:• New investor funds could be used to pay existing investors• Project-to-project lending can mask poor performance• Cross-collateralization puts your investment at risk for others' failures• Commingling enables masking of financial problems• Lack of project segregation enables fraudulent schemesProtective Measures to Look For:Strict single-purpose entity requirementsProject-specific bank accountsDebt limitations and investor approval requirementsProhibited related-party lendingClear fund segregation requirementsProfessional Best Practice:Request bank statements showing separate accounts for each project.

Keep in mind if you are renting a house to a company you can write whatever you want into the lease. 

Business Continuity: If you invest with partners, a properly structured key person insurance or buy-sell agreement funded by life insurance can ensure a smooth transition if one partner is no longer around. 

Just wondering Im looking in to them to fund future deals.

@Timothy Frazier  This will be tough as the HML will want a 1st position loan, but so will the other lender providing the rest of the funds. 

It helps estimate ARV, rehab costs, and potential returns and offers funding options.

I've done a lot of research into this and believe this is for me, but am getting some roadblocks when it comes to funding requirements and my buy box not aligning.

I am struggling to find someone to fund a primary residence.

If my funding falls through because of this confusion, and you know of a hard money lender that funds townhouse projects like this please pass along a reference for me.Thanks!