We lend on construction loans and this is a prohibitive arrangement for us.Not that you would do this, but what banks have seen in the past is that the builder family member will charge more than necessary to inflate the price of the home and then cut the money back to the homeowner.

Ultimatly it will only come out of your pocket.Depending on how many units you have you time the rent increases every month or two to allow you  to fill vacancies in stages.

On a side-note, I'm analyzing deals for fun... at this stage.

Yes, an exhaustive knowledge would be nice, but I was hoping that's what a professional forum like this could help me with.I don't feel it's fair to tell a person to exit the stage just because they're not 100% educated. 

The biggest benefit of this arrangement was actually keeping track of the hours.

@Eric Calabrese I guess it depends what stage of your investing you are in, I was in the right around 20 units spread across a bunch of duplexes.

I am still in my early beginning stages too, but I recommend reading books to get the baseline knowledge down. 

So here’s the situation:My husband and I bought a SFR under an LLC in a transitional (early stage) neighborhood.

Always remember that in your proforma the expenses could be different, if you can lower the costs (in my example, you might be able to get a quote for $275 per door from an insurance company, but this is in a later stage of your analysis).Hope that helps!

It would exhaust a material portion of my own liquidity for the money down and closing/inspection costs, but I'd have a much more affordable loan than HML and this 2-stage approach seems simplest to me.