You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

I purchased a FIRST LIEN Purchase Money Mortgage that foreclosed, originally from 2006.

But real estate will pay you money today and real estate will pay you even MORE money tomorrow. 

Collections are where the game is won or lost, and without proactive management, even the prettiest property can bleed money. 

Don’t talk money yet.  

Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.3.

Any such study is tainted by the fact that Zillow lost an enormous amount of money on their own home buying initiative.

, how do you tap into that money to scale your portfolios? 

Just make sure you understand how to underwrite a property or partner with a Hard Money lender that can manage the process for you. 

From what I have heard, Dayton is a similar market, and you will ALWAYS save money by investing locally by not needing to hire a Property Manager (yet).