I cannot remember a single one that obtained funding without a forced appreciation opportunity.The 2nd to last syndication I joined was purchased with initial negative cash flow and achieved the capital raise exceptionally quick.  

I'm currently attending a weekend info session , pre buy process and auction with Dustin Hahn's group.

For a $300,000 property, this could be $6,000 to $15,000.Mortgage on Rental Property:Loan Amount: $240,000 (assuming 80% financed at 4% interest over 30 years).Monthly Payment: Approximately $1,145.Other Expenses:Property Taxes: Estimated at 1.5% of property value annually ($4,500).Insurance: Estimated at $1,500 annually.Maintenance: Estimated at 1% of property value annually ($3,000).Property Management Fees: Assuming 10% of monthly rental income ($2,400 annually if rent is $2,000 per month).Vacancy and Turnover Costs: Estimated at 5% of annual rental income ($1,200).Total Initial Investment and Annual Operating ExpensesInitial Investment:Total Borrowed from Equity: $150,000Down Payment for Rental Property: $60,000Closing Costs for Rental Property: $10,500 (average)Total Initial Cash Outlay: $70,500 (initial investment from equity) + $10,500 (closing costs)Annual Operating Expenses:Property Taxes: $4,500Insurance: $1,500Maintenance: $3,000Property Management Fees: $2,400Vacancy and Turnover Costs: $1,200Total Operating Expenses: $12,600 annuallyExpected ReturnRental Income:Assuming $2,000 per month, annual rental income = $24,000.Net Operating Income (NOI):Annual Rental Income: $24,000Minus Annual Operating Expenses: $12,600NOI: $11,400Debt Service:Mortgage Payment on Rental Property: $1,145 per month, $13,740 annually.Total Debt Service: $13,740 (rental property) + $8,592 (equity loan) = $22,332 annually.Net Cash Flow:NOI: $11,400Minus Debt Service: $22,332Net Cash Flow: -$10,932 annually (negative cash flow initially due to high debt service).Cash-on-Cash ReturnInitial Cash Investment: $70,500Net Cash Flow (first year): -$10,932Cash-on-Cash Return: Not applicable initially due to negative cash flow.Long-Term Appreciation and AdjustmentsProperty Appreciation:Assuming a 3% annual appreciation, the property value could increase by $9,000 annually.Rent Increases:Assuming a 2% annual rent increase, rental income will rise, improving cash flow over time.

Initially we set it up as a partnership LLC, but after consulting with our CPA we realize that we could have and should have done it as a single-member LLC so that we don't have to file a 1065.

While it's always best to have a plan for how you are going to execute your exit strategy BEFORE you get started, if you're like me and just jump in you could easily find yourself wondering how to execute this plan if your initial plan runs into problems.BP is full of great advice on refinancing and if you just post that is what you're looking for, the vendors will come out of the woodwork. 

@Nathaniel Aaron Chaney So where do you put an initial investment?

In the initial days of these we did quite a few. 

There's even a portal for tenants to initiate a maintenance request. 

Consider Fix-and-Rent ApproachIf flipping margins are too tight, you could renovate properties to rent out initially.

Bought for $180k in 2023, dumped ~$120k into the rehab (about double what we initially estimated), and raised rents from $525/unit to $1200/unit.