Very interesting...He told me he is not offering a service model like the percent of rehab and wants a flat fee. 

Regarding rents, indeed if market rents go up the management keeps all the upside (that's the downside of this passive/low risk model).In terms of rental income tax, I can shelter with insurance costs and property taxes. 

The ones that think they do are usually following the traditional BP model...and they'd be wrong.You have to "reverse engineer" it, starting from your Financial Goals, and working your way to where you are right now.  

I see you've shared your model with a few folks--may I take a look at your calculations as well? 

The closest I can get to that over here in America is finding investors to do a CP loan on land where I will provide a list of suggested areas for sale, as well as the condominiums total 3D model with construction costs and all dimensions/specs provided.

Being in WA with high transfer costs and always being aware of tax burdens, I have modified the model from the traditional buy & flip a bit, but that's my new venture for now. 

Can you ask him/her if there are any pre fabricated hotel models he's seen?

If you have an understanding of real estate and think you can get better results growing your retirement savings in that asset class, then a self-directed IRA or Solo 401(k) is a means to do that.All investments are made in the name of the plan, all expenses come from the plan, and all return accrues to the plan.There are several different plan types and service models available.  

@Canesha Edwards Your model is assuming those expenses are annual, but if you are only putting in monthly expenses then your NOI and other return metrics are way off.

It may help to have a real estate attorney look it over.This kind of business model is disappointing to hear about as it sours potential investors who may be interested in doing something like this with a legit business.