He takes the same risk as any landlord out there, since a lot of renters would not qualify for a mortgage and default anyway.

Some clients who are more aggressive will invest in B-/C+/C class areas in Dayton 1-4 units and get A LOT of cash flow, but incur risks of evictions, expensive turnover renovations, and general C class neighborhood headaches.What are you looking to achieve?

A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion. 

Hey Themis, it sounds like you already have a solid foundation in real estate from working in the commercial industry, so it should be a pretty smooth transition into doing your own investments.I would put a lot of focus on building out your team of contractors.

A lot to unpack here, though, to really decide.

If you invest a lot then you know what I am talking about. 

There is a lot of new things about to break ground.

I've done a lot of wraps and subtos and highly prefer the seller-finance strategy for a lot of reasons, including offering the opportunity of homeownership to those otherwise rejected by traditional banks.

Start with a contractor that has a lot of 5 star reviews.You can join some facebook groups and network with investors in your area.

If you are new, be sure you can raise the funds before proceeding.In my opinion, you are going to have a hard time raising money with a 6% pref and 70% of the profits after that unless you have a lot of newbie investors in your Rolodex.