I've seen all sorts of structures from 20-35% of the budget to a precentage of the profit. 

Rental Strategies and STRs: ADUs don't need to rely on short-term rentals to be profitable.

. $500,000 x 20% capital gain tax is $100,000 that you owe.1) put remaining $400,000 net profit into a mortgage note of 12% which gives you cash flow of $48,000 a year.2) Take your $500,000 and roll it over to a DST earning 5%. 

Have you ever considered using your skills and industry knowledge to start your own fix and flip projects? What are some of the challenges or opportunities you see in making the transition from contractor to investor?

No, I think it is their self described "band of scrappy bankers and engineers" actually just trying to create a white label service where the QI has no liability and no effort to expend other than holding the money in some account doing heaven only knows what to make their profit.  

I visited the area and discovered it would be stable, affordable, and profitable.

Feel free to inquire about their staff qualifications if it's a larger organization.2.

Private investors offer profits or fixed returns, while hard money loans are short-term loans.

A PM should be hired to alleviate the stress and responsibilities that come with being a landlord not with the idea solely on profit. 

The question is do you have the team OOS that can consistently deliver you solid deals, and then have the right management team in place to ensure profitability and peace of mind.I own a vertically integrated real estate company in Birmingham and we help people all the time wanting to build wealth in a lower priced market with high cashflow.