Ok To update this topic I am nearing the completion of my project with my duplex in the sketchy neighborhood I have had a few people approach me about renting the unitsthey like the price and couldnt care less that I put in accent walls or that there is a waterfall faucet and a floating vanity.they just want a clean place to rest their heads.so perhaps I was all wrong in trying to provide the upgradesone upgrade they did like was the washer dryer hook up i installed by converting one of the two hall closets into a space for a stack washer and dryer.I liked what one of the earlier respondents said concerning durabilitymoen faucets because you can change cartriges and tile the tub surround becuase of durability I will be looking for ways to have function as well as form and keep it simple.maybe I will keep the floating vanities and just install pedestals with shelving and keep the floating vanities for myself.

He is thrilled and thinks he is getting a phenomenal deal since the neighborhood is in gentrification he feels he wants to stay for a few yearsAlso you have to understand also that the kitchens and baths and living spaces are way above grade for the area water fall faucets, laminate flooring, deep sinksglass back splashes tiled floors in bathrooms rain shower heads washer dryer hook ups and the rent is ultimately on par or slightly less than the neighborhood so I feel I have the right to be selective(that is my arrogance talking) so to address that as far as my process seeming arrogantI have been accused of being arrogant before so I wont be mad anyone for saying that.but I am genuinely a nice caring person who will bend over backwards for my tenantsso i may be a little arrogant but I will jump through hoops for them just like I am expecting them to jump through a few hoopsI will say I am humbled by all of the solidarity against my plan so I wil re think it I have much to learn and this is my first venture into this game I am doing it solely on instinct and my intuition so thanks for all of your feedback everyone I am positive it all came from a place of love and caringJust a side note I am so laid back and easy going that sometimes people tend to take advantage of my kindness so part of what I do is make sure the people who I have to interact with have some integrity and moral character so that I dont have to be a bad guy when they stop paying their rent because they somehow think they can get away with anything and they push the envelope until I have to show my teeth

And I have had a Section 8 rental stand empty for 3 months and nothing was taken.I NEVER advertise an address, just a general location, "Nice 3 bedroom in the Arroyo Waterfall area".

I am wondering what advice you can give on an appropriate waterfall payout to investors if I am the manager of the real estate assets, leases, and management.

Here is the way it is currently set up:Partner 1 - $100KPartner 2 - $100KPartner 3 - $100KPartner 4 - $100KPartner 5 - $100K*However, the managing company/partner of the fund will own 20% to compensate for the ongoing management of the LLC and the property.I have seen waterfall models where there is a "return on capital" and "return of capital" where the investor is paid a preferred return on their current outstanding amount of capital that has not yet been returned.

I'd then have a waterfall distribution with a 7-10% preferred return pari passu, then maybe one more hurdle at 15%.

I'm not seeing how that would be any different than water falling directly from the sky.Also, he never seemed to notice this during his inspections.

The backyard is secluded and also has a waterfall for your zen-like serenityThe property address is XXXX Avenue San Luis, Woodland Hills, CA 91364Please drive by,walk up the private driveway, the current tenant is moving out this week.

He is interested in a waterfall structure of some sort with a preferred return and he's asking us to make a proposal of what the various hurdles would be.

The structure you are searching for sounds like it would wind up as a waterfall...all profits (preferred return) to the primary partner until you reach a certain point then a switch of percentages to 50/50 or what have you after that target is reached...but that is the least of the issues here