-General guidance for other factors I need to consider???

"The common factor in all of your failed relationships is you"!

If you pay them closer to $100, that might be your entire commission for that turn, before you've even factored in the substantial other costs that are going to come with scaling.It's possible the charges they were drumming up are ghost charges, but unlikely.

They will evaluate the risk and return profile of the note, considering factors like interest rate, duration, and the creditworthiness of the payer (you as the property buyer). 

Even factoring in appreciation, their equity should be below 15% of ARV. 

Hopefully, this first investment will launch our journey in real estate.Here are some criteria we have in mind:Not in downtown SacramentoClass C+ or B location, since we will be living in one unit (we just want a safe location)Units with shared walls, not ceilingsSeparately meteredFairly renovated or well-maintained (not a fixer-upper, but if one unit is renovated and the others need some work, we would love the experience of fixing and renovating)Can you think of any other factors we should consider?

Of course she loved socializing with her tenants, so that is a huge factor.

However, there are some important factors to consider:Mortgage transfer: Most conventional mortgages have a "due-on-sale" clause that could be triggered by transferring the property to an LLC.

@Dave IveryReal estate investment (REI) can be challenging due to factors like fears of failing, not knowing enough, money limits, surprise bills, tough competition, personal limits, problems in doing things, and fear of being turned down.

DSCR is still Income/Expenses, but they add in more expenses like vacancy factors, management costs, replacement reserves, etc into the expense side.