You could find a fund that allowed sophisticated investors...but you need to able to prove that you're sophisticated (I.E. an experienced investor)

These are usually more sophisticated investors and experienced owner operators.

Unfortunately, it also attracts its share of sophisticated scammers with fake websites, spoofed email addresses, and professional sounding names.

a) Office Supplies (e.g. stamps, envelopes) b) Software c) Gas/Mileage d) Advertising + Payroll e) Concessions f) Lease loss g) Lease renewal fees12) Lawyer/Law office/Legal fees13) Accounting/Bookkeeping/CPA/Tax preparer/Tax advisorSecond, like you said it depends on the property, if older you'll need larger reserves.

Fortunately, they moved to FL, and put most of the proceeds into their home there, and due to FL homestead laws, can't be touched, so the plaintiffs settled for the $1 million.Spoke to lawyers, he actually had a manager on the payroll, had he stayed home and slept, things would be different.

I am not on my payroll yet which I’m going to do here shortly.

For example, if a lot of people are buying $150K homes that are ranch style, brick construction with a basement, then focus on areas that have those houses with great school districts.Also, focus on areas that have low DOM (days on the market) as that indicates a hot area.If you want to be more sophisticated about it, you have to also watch the new foreclosure filings - as that is a leading indicator whether the area will have a potential to go down in price over the next 6-18 months.Lastly, stay away from areas with predominantly new construction or houses that are very new (less than 3 years old).

They like to save time by outsourcing to professionals (You), they want to work with someone they ("feel" important word) sophisticated, sharp, an expert in his field (whether you are or not).Middle class people want to feel like they're getting a deal.Poor people are opportunistic, more impulsive but are rarely qualified and you probably shouldn't sell to them.

Its not inconceivable to find less sophisticated investors that would be very happy with a 10-12% return on their money but you'll likely have to hand hold them for a long while to get them to the finish line with you. 

On larger properties there is also on site payroll employees that the owner pays for.