Our model is basically 2 people to a room, each individual pays $175 a week, each house has a manager (who lives free of charge)that handles intakes, discharges, accountability, checking chores and collecting the rent.

On the $620,000 underlying note we were earning $37,000 annual income.2.

We do get a better fee/split structure, and that's a fair trade for the extra work of managing a large investor base and it's associated extra accounting and tax reporting overhead.I also find the advice in the OP to be contradictory. 

My advice is: If you are managing from a distance, you need someone with a high level of accountability and close proximity to care for your assets.  

We want to hold people accountable-- if you can make money on selling that ********, you can eat some crow when the chickens come home to roost. 

The pref equity would pay out a 7% (annualized) quarterly distribution and a 7% back end return when the pref equity capital is returned.

I send him a Christmas card with about 10% of his annual bills in cash.I have another who does sporadic work and similar to the above I refer him out often, have bought him lunch, etc.

@John CarrI recommend finding an accountant who specializes in real estate taxation and tax planning.

My paint account was with BEAR, and serviced by HD.

If I just go by AirDNA, the difference is not much in annual revenues.Thanks,Ankur