For rentals, focus on cash flow and metrics like cap rate (target 8%-10%) or cash-on-cash return.

From an operational standpoint you might also want to consider the cost of any extra tax returns that are needed by the entity as well as any extra accounting fees.Good Luck!

You need to understand how to drive the Net Operating Income to produce a good solid return. 

It’s one of the few places where you can realistically achieve solid returns without needing a massive upfront investment.If you’re open to exploring other markets, Detroit might be worth considering.

In general though, I would think that if this is a partnership LLC you could make a capital contribution in return for equity in the LLC. 

I can’t imagine the returns you would have to generate. 22% federal tax, plus 8% state tax, plus 10% penalty.

The good subs in your area will likely have plenty of work already and may not even return phone calls.

If that is the case then that is considered cost of doing business and I would advise that should be calculated in your costs/returns you provide to the investor.IF you are referring to the investor who is the borrower - then I would have included that cost in the loan agreement.

I also remember a time when we could claim a dependent on our tax returns even if the dependent didn't have a SSN. 

For 6 years we had uninterrupted return on the 14% annual area.