Also have a realtor buddy that is willing to give me leads when any off market properties pop up. 

Many of them are savvy marketers but don't have background/experience in pref equity space but lead folks to believe it's just an  'easy button' to make stellar returns. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

Unauthorized occupants can lead to property damage and lease violations.7.

I could literally put 200k in brokerage and receive 80k for the loan with 7% rate, and generate 8%-14$ return from the same investment LOL

Additionally, as Gino said, when you are raising capital from passive investors who are relying on you to generate their profits, you are selling securities and must follow securities laws; i.e., you need to learn how to "syndicate" real estate.

Inaccurate claims could lead to complications down the line, especially during future sales or refinances.Overall, the process is straightforward, but patience may be required as it can take some time to update records.

As a new investor, I simply don't have the budget for ListSource.com or the like, with prices between $0.14 and $0.18 per lead.

Finding quality tenants is crucial for generating consistent rental income.

The issue becomes if I leave, the proerty doesn’t generate positive cashflow.