We do have a lawyer lined up who should be able to take care of that aspect, so that's good to know.In terms of the structure you proposed, I just have a couple follow up questions to make sure I understand properly:1) If the investor pays us $50,000, we would offer to pay him a preferred return of $3,000 per year from the monthly income we receive?

Once I fully understand the financial aspects of REI I think it’ll be easier for me to make a decision

Make sure it is defined and you understand your value.

In the very least, you will want to do all the bullet points you mentioned and try to keep all aspects of the business in the name of the business and separate from your personal business. 

(Obviously, if you add leverage, you are increasing your risk and they didn't study that aspect.)

So here’s another aspect that’s concerning.

It must be your primary residence but their is no rule saying you can not sleep over at your significant other place occasionally.Every aspect of investing has a measurement of risk ;)

I also like the “responsibility” aspect of forcing a confirmation event as if they can’t remember to confirm they won’t remember it’s rent day.

Jay Hinrichs yes Bruce was a little skeptical on the multi family market but all in all the aspect of real estate actually helping the turn around of the next recession actually made sense in the SFR area.

If you made money on your first deal, that's a bonus... but the most important aspect is acquired knowledge.