The idea is that he will 100% fund the acquisition of buy and hold properties (down payment, etc.) and I will 100% find, acquire, and manage the buy and hold properties. 

Keep in mind that there may be legit charges associated with termination- for instance, they may need to hold some funds in escrow to cover lingering utility bills or cleaning after that 30 day period. 

@Kevin Orellana do you like the asset; is it in a neighborhood that you are proud to own it, do you see it continuing to be a desirable place to live? 

We are interested in a property next door to our current flip, but our funds are tied up in the current house.

This fund supposedly had the highest rate of return overall coming primarily from appreciation.  

As @Chris Seveney mentioned there is not really enough equity in house 3 to get a meaningful LOC. even if you were able to leverage enough to pay off House 2 the new rate you would be paying would be higher than the existing mortgage, so you would still be behind overall.Your ROI on those payoffs vs keeping money in index funds is not very good either.Lastly, remember that cash flow from rentals can seem good until it’s not.

Bottom line, initiate the transfer of funds from Federa back into your bank account and contact your bank immediately to initiate a dispute.If anyone actually got to partake in an auction or got their money transferred back into their bank, I'd like to hear from you. 

When transferring funds from Hungary to the U.S.

Adding additional amenities is a better use of funds.

Our tenants don't seem to mind a security deposit (we charge 1/3 a month's rent), and we've already set up our systems to ensure no co-mingling of security deposit funds and rent (or other personal) funds.Still, I'd love to hear any experiences for good or ill that anyone has had with their services.