If you want to make it more accurate, I would break the placement fee into a monthly amount and convert that into a percent combined with the 10% management fee.

I'm fairly confident that with modern upgrades the house will support that valuation and command high rents.

A combination of utilizing renovation skills and managing a cash flow producing property long term.Best of luck!

We have 8 properties in Cahokia, IL a combination of 3,4 and 5 bedrooms available. $10,000.00 each as is or $40,000 each rehabbed and rented. 

I get that these places have an old school style, but can't you recreate that with modern clean looking materials. 

Depending on income vs liabilities, there may be some combination that works. 

But you are just using estate planning and LLC's to work in the modern era to fight modern wealth destruction (law suits/judgments, healthcare expenses leading to long term care / incapacity, remarriage after death, death or remarriage of children.) 

My career goal is to one day design and build large, modern homes and I have access to the money required through investors, but having my dad on board is my number one priority.Build a successful real estate portfolio.

@Shalom Shore it could be a combination of things. 

And if your combined W2 income is over $150k - those rental losses are "frozen", unless you qualify as REPro. 4.