This notion of buying above appraised cost is just silliness.

I think you have to separate the notion of a "new business" getting an 'unsecured' loan vs. getting a 'secured' loan (by a piece of real estate. 

So while the notion of not participating may provide a false sense of security on the liability front, it runs smack into a SEC reg violation.To address your specific question, let me say my thinking runs counter to conventional wisdom in regards to liability protection provided through the use of LLCs.

You giving up 25% equity is an absurd notion. 

Think it thru, it's an idiotic notion that people will just simply use a NEWLY licensed agent, with zero experience, and most of time zero real estate background, but hey they have a license...... 

In any event, any notion of CA running a deficit is completely false. 

I do get the notion that the rent I am targeting is a bit high. 

I have no idea where you get the notion that in renting you will do little renovation and get the best dollars compared to other stuff .

I 2nd Wale’s notion that this is the place to continue learning and growing.

Yes, I get the over all notion.