Draw the line based on what is the return for each. if it costs and extra $40k to get you $40k price increase it is not worth it, it has to add value to you.

Cash on cash returns are, generally speaking, the inverse of risk.  

(yellow, blue, handwritten, scribbles).19.Slap a unique tracking phone number on each mailer design.20.Spend another fortune sending mailers, again.21.Get yelled at, again.22.Remove people from the list that demand it, again.23.Receive a bunch of returned mailers, again.24.Spend another fortune to skip trace and resend the new mailers… again.25.Subscribe to your favorite real estate investing forum and ask people what you are doing wrong.26.Try hard to make sense of their response: “If all this is not working for you, it means you didn’t do it enough, do more (of what obviously is not working), and stay consistent”.27.Get depressed.28.Get yourself together.29.Do it all over again.30.

I recognize that the CoC return is not as high as we'd like, but it does come with some built in equity (~$100,000)Details:- 3/2 Single family house (1487 sq ft) with a 1/1 ADU out back- Zipcode 78745- Purchase price: $469,900- Down payment: $50,000 plus CC (includes assignment fee)- Seller Finance $419,900 at 3.5% interest; 30 year amortization with a 15 year balloon- PITI $2744.02- Rental comps: $2667 for the 3/2; $1505 for the 1/1 - LTR according to BP (Total $4172)- Repairs needed - minimal, coat of paint and maybe swapping a window unit A/C for a mini split

By establishing a set return of $600/year, there is no ability to adjust that number to future inflation.3 - Now, the big one. 

This approach allows our clients to enjoy consistent bookings, great reviews, and higher returns on their properties than a average or mom and pop operator. 

The pref equity would pay out a 7% (annualized) quarterly distribution and a 7% back end return when the pref equity capital is returned.

(you do not pay the taxes you lose the house, and you do not pay the insurance the lender will put insurance on the property for you)  Assuming the properties are showing up on your tax returns the income/loss will be calculated from the returns using this form:  https://content.enactmi.com/documents/calculators/Form1038.C...The form will allow you to add back your paper loss of deprecation on your returns as well as your property tax, insurance and mortgage interest deduction as those last three are already taking into account into your payment as mentioned in the first paragraph.

I am looking to review the subscription doc to get a better understanding on the profit share calculation after 100% of my initial investment capital is returned 

Something that is making lean towards these, is that I can just look at my tax return and pay 10% of the profit per my return.