There are tons of them out there so dive and find your niche!

A high end luxury home like this may be possible as a midterm rental but it's definitely extremely niche.

Preferred equity tiers really act more like a secondary debt layer.

It would be preferable for all of them to be in the same general area of DFW. 

.- Preferred Return: 8% annually to the investor.- Profit Sharing: After the preferred return, profits are split 70% to the investor and 30% to the sponsor.- Management Fees: 2% of gross rental income annually.- Acquisition Fee: 2% of the purchase price.- Disposition Fee: 1% of the sale price.Option 2: Debt Financing with Equity Upside- Target Properties: Single-family homes, multifamily properties, and land for development in prime locations.- Interest Rate: 6% interest only for a term of 5 to 10 years- Prepayment Penalty: 2% if the loan is paid within the first 3 years- Equity Upside: Investor receives 30% equity of the appreciationWhich option do you think is more attractive and why?

You are asking about markets where you can Buy, Rehab, Rent out, Refinance, and Repeat (BRRRR Method) where you can buy 70% of After Repair Value and under $150,000 with good cashflow.This is my favorite strategy as well.There are several markets in Michigan where you can do this but the market I prefer is Lansing, MI.It is the State capitol, there is always a lot of economic development as a result which creates jobs and demand for housing which keeps rents up and appreciation steady.To Your Success! 

I prefer St Croix its bigger, more residential , more affordable, less mass tourism.http://ltg.gov.vi/recorder-of-deeds.html

@Mauricio Duarte Either approach (inventory or COGS) will be able to get you the project progress report, so it's a matter of preference so if you think COGS approach works better for your purpose then go with it. 

I really want to start with flipping and then make my way to actual rentals, preferably in the Northern Eastern states.What’s your next move after this one?

@Arya ChenTo initiate a self-storage deal, work with a specialized broker, preferably from networks like the Self Storage Association or commercial real estate firms.