If anybody has done this, do you collect a point and the rest goes to the investor?

I understand that because the cash flow will be delayed for 1-2 years, I am technically paying such good price for the apartment, therefore I would like to collect more opinions on this type of investment.

I use Buildium and QuickBooks - Buildium for tenant placement, screening, rent collection, etc. and QuickBooks for finances. 

While a flip is more intense, owning a rental is NOT just sitting back and collecting money.  

I rented to him and have zero issues collecting rent.

My partner has extensive experience in the new construction industry, and see opportunity in the triangle for in-fill and rural lot new construction.

They collect rent and you have to chase them for it, and I think they have a ring of deadbeat tenants that go from one house to the other, and pay a security deposit and nothing more

Deegan and @Arda Bircan There are technically 7 Tests for Material Participation (but 3 that are most common) -> the individual 500 hour mark, that the activity of the individual is substantially all, and that the individual participates more than 100 hours + no-one else spends more time than them.Litmus Test: Are your hours integral to the operationsThe hours that qualify must be substantially all hours and have a legitimate impact on the rental activities.Activities that generally count: showing the property for rent, taking tenant applications & screening tenants, preparing & negotiating leases, cleaning & preparing the units for rent, repairs, and improvements, managing the construction, purchasing supplies & materials, inspecting the property, responding to tenant complaints & inquiries, collecting & depositing rents, evicting tenants, writing & placing advertisements, and working on your websiteActivities that don't count: education & research, investor-type activities, and travel time..

You might find out you would collect more money with a PM than you do managing yourself.

If your state has a security deposit cap collecting the year up front is problematic.