I’d double check with your tax preparer to make sure you didn’t just misunderstand the first time around.If he’s still saying the same thing, I’d highly recommend getting a different tax preparer.

If this were your money only that would be different but given the fact that you are using other people’s money you should get multiple bids and hire and manage professional contractors so there are no potential conflicts of interest or misunderstandings in regards to costs, time frames, mistakes etc. 

@Allison Anderson I apologize for the misunderstanding.  

The Price to Rent ratio seems to be favorable for the Houston area unless I am misunderstanding.

I've also read that it's smart to be very detailed in the contract, to avoid misunderstandings later. 

@Baris Berk Lots of people have hindsight bias exacerbated by a misunderstanding of the 2008 Financial Crisis that drive them to expect when RE prices get to high the bottom drops out everywhere. 2008 was a credit bubble that drove a Real Estate bubble.

In which case I think cap rate and cash on cash return are the same if I'm not misunderstanding. 

Am I misunderstanding you or Julie when I conclude that even if I have ten mortgages in my name, I can still JV if someone else gets the mortgage?

I think all of you arguing that 2% is impossible because of capEx and repairs, and PM, etc are misunderstanding the rule.

Am I misunderstanding that?