What challenges have you faced that you attribute to the difference in businesses?

.$40k attributable to land and $60k to building.You sell it 5 years later for $150k.You'll need to take $2,182/year for depreciation (see MARCS 27.5y table), so that's $10,908 in 5 years.Also, let's say you accumulated $5k in passive activity loss carryover.

If the property is sold at a profit, 25% of the profit is attributed to the residence unit and 75% of the sale profit is attributed to the rental units.  

This was a full house remodel, completely down to the studs.Project budget going in was $52,000 - I'm on pace to be closer to $65,000 and that's with me doing a lot of the work.Of that, it looks like close to $4,000-5,000 will be attributable to disreputable contractors.Oddly enough many of these folks have the gall to reach out later and ask for more work. 

He claims he can directly attribute at least $4M in sales over those 15 years to him attending these things.I am dubious about it but he believes it.

Partnering between two people both with no or limited experience; both with no or limited capital, or because they’re “good friends” and want an adventure together, will ultimately result not only in the failure of the partnership, but often in long term bitter feeling of blame and hostility between the ex partners.The partnerships that are successfully, both financially and socially, have most of these characteristics1- the  parties bring complimentary attributes to the partnership2- the parties are of a like mind concerning ethics3- the parties view risk - return the same way4- the parties goals are aligned5- the parties RESPECT one another 6- the parties are willing to defer to the other partner in that partner’s area of expertise7- neither party is under undo financial pressure8- each partner’s “significant other” is supportive of the partnership9- the partners have an agreed plan in case of death or incapacity of one partner10 - the partners have a legal, executed buyout plan in case one or both parties want to terminate the partnershipIf you’re considering going into a real estate, or any business partnership, you may want to consider the above and take a hard look at the chances of success.  

I'd removed it* the quote was never 'closed' or attributed to anyone.

By sticking with these ratios( there are some compensating factors to move those around) we generally have less than 10% default rate.2) The turn key rental/ sell to an investor properties has these attributes-- 1) property is in decent repair (not the Taj Mahal- but decent clean housing), 2) major repairs are done, 3) tenant is screened/underwritten like when we sell on owner financing-- we do criminal background, don't care about credit as long as they paid their last landlord and the one before- or have good reason for not doing so, 4) 12 month lease, 5) sell on 10 or 12 cap (10% or 12% annual ROI) depending on neighborhood.In working class neighborhoods we sell turn keys on 10 cap, in lower income neighborhoods we sell turn keys on 12 cap. 

I met the PM and they seem very professional, experienced, and organized (not that these attributes guarantee anything)

I attribute this to:- Type of property (all are class A rentals in great locations that appeal to responsible, professional tenants)- Rigorous pre-screening of pet and owner.