Just unlikely you'll allocate all the money as a HML without a super strong network which may be unlikelier than all deals being properly paid on time.You'll need to invest $8million gross, at 10% gross returns to make $40k/mo net.

While living with tenants can pose challenges like privacy concerns and tenant relations, clear boundaries, professional management, and proper tenant screening will help you succeed.

@Albert Gallucci as many have pointed out, in the commercial space of 100+ apartment buildings and offices, property classes have some pretty decent industry standards.We started applying these to 1-4 unit properties around 10 years ago, which you can verify on our blogs, because we saw too many newbie investors not properly taking into account things like, neighborhood status, tenant pool, property condition, etc.Unfortunately, there's no industry standard for this, but you can use some basic logic to think your way through your own Classifications.

V.G Jason merely pointed out what you are providing to the hypothetical partnership  can easily be performed through  contracted services with proper vetting and without having to give up 50% of the upside.

While there could be avenues to acquire real estate creatively with less cash operating  real estate properly is capital intensive. 

Underwriting sponsors and their opportunities can easily be a full time job if it is done properly. 

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases: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.

There are fees associated with going to Real Estate school, obtaining your license, joining the board and MLS for your area, getting proper E&O insurance and so forth. 

I think it is just as indisputable that higher cost markets will produce greater value add via a proper rehab.Next question is does initial cash flow have any correlation to actual cash flow over a long hold. 

If that’s the case, I’d recommend considering areas outside of Dallas proper where you can still find properties with strong growth potential.Cities like Prosper, Melissa, Princeton, and Anna are excellent options to explore.