@Rolando DeLeon Are your rentals based in WI or somewhere else? 

A well drafted operating agreement will address business planning above all else.

I’m not suggesting you can’t successfully complete the BRRRR method but if you are selecting your markets based on where that strategy is most attainable you’re going to make regretful investment decisions because most who chime in will promote markets where you will be able to obtain a favorable cash out refinance while ignoring everything else that supports whether the market has a good underlying investment thesis or has a a more attainable alignment of sale values and appraisal values. 

I will post here once I know more. if anyone else has experiece can you please share. 

. - Only 4 houses down from my current home in metro Detroit, MI.We toured the property and it was a hot mess, easily a complete remodel because of cigarette smoke damage that seems to have reached every corner, but the prospect of redoing it really excites us.

Know the Local Laws Inside and OutBefore anything else, it's crucial to research the local housing laws in your area.

Who else is coming from Houston Texas? 

Include a fine for violations, additional fees for mitigating smoke damage (including odors), and whatever else is needed.

Is it fair to expect the capital partner to bring in the down-payments since they wouldn't be bringing anything else to the partnership? 

- It would suck to put all the work into developing something like this and have it throwing off a lot of cash, only to find out no one else wants to replace you & your wife for a reasonable sales price:(