I actually wrote down all the appliances and capex items and amortized it based on the projected life expectancy and it all comes to just over 15%! 

Like everything else in life, it has pros and cons.

The deals I have seen work are larger 4 units $800k+ in class A/B+ areas mainly as those have less competition and atleast my market noth side chicago they still sell at decent real life cap rates.

Very few things can be guaranteed in life but once you have title they have to give you an estoppel period.  

In my experience these are the levels of how financial fraud is doneLevel 1 - The “sponsor” is a fraudster from the beginning and the entire investment is a designed fraud designed to steal the investor's money Level 2 - The sponsor initially intends to operate legally and honestly but the temptation of easy access to money, usually fueled by addictions to drugs, sex, partying, etc. leads to the bad decision to line the sponsors own pocketsLevel 3 - The sponsor intends to operate legally but a crisis in their life resulting in a need for money leads the sponsor to “borrow” from investor’s funds with the full intention of paying it back ( which they are unable to do).Level 4 - The sponsor intends to operate legally but the assets under their management incur substantial loses; the sponsor attempts to cover up these loses by “temporarily” borrowing from one investor to pay another or submitting false results.

However, as a young adult it is great life experience, so if he can go for cheap, why not? 

I like the mindset he coaches...just enough to be financially free to do what you want to do in life. 

I have dedicated my entire life to being a GC.

The BIG issue is the EX-Wife who wishes to maintain a life style she clearly cannot afford and wants to STAY in the home with the Children BUT cannot AFFORD to make the payments on such DEBT that would allow for that (thus her need for $300K +/- in extra proceeds that would in essence be used to make those payments for the 3 years)Sadly yes there are consequences when families break up, separation's and marital divorce happens.

I think both are great - I prefer to lend out of my Self-Directed IRA first, then I use the cash value of my life insurance.