There's no reason to not still require the standard month in advance, and then each subsequent fortnight you could get 1/26th annual rent (rather than 1/24th).Or, if they prefer to pay the 1/24th fortnightly, why not give them the 12th month "free"?

The holder of the note would use the money to buy real estate but I would only receive one payment annually so there would be very few transactions.

-Gross Monthly Operating Income3,291.75 Monthly Operating ExpensesProperty Management Fees347.00 Repairs and Maintenance200.00 Real Estate Taxes250.00 Rental Property Insurance298.81 Homeowners/Property Association FeesReplacement Reserve50.00 Utilities150.00 AdvertisingMonthly Operating Expenses1,295.81 Net Operating Income (NOI)Total Annual Operating Income39,501.00 Total Annual Operating Expense15,549.72 Annual Net Operating Income23,951.28 Capitalization Rate and ValuationDesired Capitalization Rate8.00%Property Valuation (Offer Price)299,391.00 Actual Purchase Price167,500.00 Actual Capitalization Rate14.30%Loan InformationDown Payment33,500.00 Loan Amount167,500.00 Acquisition Costs and Loan Fees6,000.00 Length of Mortgage (years)15 Annual Interest Rate6.690%Initial Investment6,000.00 Monthly Mortgage Payment (PI)1,476.66 Annual Interest11,002.25 Annual Principal6,717.63 Total Annual Debt Service17,719.88 Cash Flow and ROITotal Monthly Cash Flow (before taxes)519.28 Total Annual Cash Flow (before taxes)6,231.40 Cash on Cash Return (ROI)103.86%

I have very low paid expenditures, currently the property tax is $1,100 annually, I pay 65$ in insurance and I am setting aside 7% in capital expenditures, best of all no mortgage.

You can go to the county courthouse and file as a sole proprietor with no annual costs.

@Nina Wolf  Many real estate investors are advised to put your investment properties in a corporate name.

HOWEVER There is a small tax payer exclusion that allows deduction of up to $25,000 annually of losses if you're under a certain AGI. 

Details in MLSUnits: 6Taxes: $5874 (annual)Gross Income: $48,600 ($675 per month)Net Operating Income $38,838Total Expenses: $9762Vacancy Rate: 5%Asking Price: $449KOwner pays Trash & Water______________________________________________________________Based on the expenses I am assuming that the property management is completed by the owner and that they are including ~$4K a year in insurance.I ran the numbers in my own Deal Analyzer and I added:5% of Effective Gross Income as Maintenance Expense 10% of Effective Gross Income as Property Management ExpenseBumped the vacancy rate from 5% to 10%Insurance: $3000 (annual $500 per door)Water: $3240 ($45 per door - typical in city)Trash: $1,800 ($25 per door - complete guess)$12K for improvements ($2k per door)20 year note @ 5% with 20% down (assuming full asking price)2% Closing costs______________________________________________________________My numbers show a Cap Rate of 5.7%, cash on cash return of -5.12% and -$1,668 of annual cash flow. 

What kind of annual expense do these three garner?

You will need to file an annual tax return for the Charitable Trust, Form 5227 Split-Interest Trust Return.