You're argument Mike is the typical one I hear that everyone should self-manage.

They typically charge 10% as a late fee.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

To see if this strategy is worth it, focus on key areas like depreciation (standard or using cost segregation for bigger upfront deductions), mortgage interest, and typical expenses like management, repairs, and taxes.

Typically what I see is more like 30-40% down to break even. 

These loans are typically secured by real estate assets and can be repaid once your cash flow improves.Mezzanine Financing: This combines debt and equity financing, allowing you to borrow the needed funds with the option for the lender to convert debt into equity if not repaid on time.

House managers typically are offered free rent, but I am charging half until the house is filled.

@Joseph Beilke no offense, but typical newbie mindset mistake!

Typically each partner would just report their share of the income and expenses on schedule E. 

Typically, you'll still need about 10% into the deal though.