Rates may be much higher, you maybe can't refinance for some unplanned disaster. 

Given all the risk you need a large margin to make up for unplanned rehab costs and I doubt you will get that in the current market.

Since we started, we’ve had no un-planned vacancies and have had the pleasure of seeing benefits like, higher rent, double screened tenants, as well as an allowable mix of turnover that falls somewhere in between long term stays and short term stays.We’ve even started to utilize Airbnb as the seasonality of the short term market changes.

That said, as a landlord, there have been a number of times when I wish I held a security deposit because my tenants moved out and left a mess in the apartment and I had no way easy way to go after them (ex. dirty fridge full of expired food = 2 unplanned hours of my own time to clean out).

And even with a good crew it seems there are always delays and unforeseen (but hopefully not unplanned for) expenses.

@Jason Hirko I've had bad experiences in the past on my first primary property/converted to unplanned rental.

It also helps to have a larger portfolio to assist with covering for any large, unplanned repairs.  

1) "Trust but verify" - we ended up running into permit problems which held up the sale, my contractor didn't do a great job of pulling the required permits and I didn't question him, everything worked out in the end but it was harder than it needed to be2) Schedule – the contractor I used wasn’t great at scheduling his time, things always took more time than they should have which resulted in delays3) Cost overruns – I was very conservative on my estimates for pretty much everything so it all worked however we did run into some surprises (active termite infestation, unplanned stucco requirements) And now the numbers...purchase price - $220,000.00closing costs - $5,908.20rehab - $58,030.00holding costs - $13,649.02 (insurance, utilities, taxes, financing)commission on sale - $17,150.00sale price - $343,000.00Total Profit - $28,262.78!

It should also detail any planned buyout of a partner/owner, along with a process to handle unplanned events (death, dissolution, sale).If the third-party is a lender, then you would place a mortgage (1st or 2nd) with them in exchange for a loan.  

With only $3,300 as gross annual income, not considering management fees (if applicable), unplanned vacancies and other misc. expenses, that leaves a pretty narrow margin from an investor's point of view.