I've been renting out for the last 2 years using that systems (room by room) and it works - gross rental yields at 10% in some parts of Lisbon underserved. 

Plus the FMR and Section 8 payment is way more than my carrying costs, spec since I buy multi families, so Its not like its decimating my monthly gross by taking care of some place.

Comparing two deals - with almost same price point #1. no rent increases but Percentage rent lease - There is a base rent ( ~65% of NOI)  and the rest is percentage of their gross sales in last 12 months#2. 10% rent increase every 5 yearsAs a newbie option #2 seems preferable /safer to me, and #1 may be slightly riskier.

However, if your purchase price was not tied to the mortgage payoff and the law office was not in on it, then I still don't see a fraud only a GROSS error by the law office in releasing that money prior to closing. 

I like to call this a nice safety net for those that our younger and looking to save but fear locking up all their capital. 2) Keep in mind to contribute directly to a Roth IRA, you need to be under the Modified Adjusted Gross Income (MAGI).

I’ve had investors that initially bought SFRs in CA and accumulated about $400k - then sold the properties and now are actively buying fixers, small homes and value add properties where they use the $300k to purchase and improve and make between $200k to $300k per year in gross profits when selling a renovated or improved property.

The group home gross around 400,000 a year.

Add on top the expected capex costs that wipe away 3 months to 24 months of gross income. 

Now, it's paid off fully, worth about $65k, I self-managed it from the west coast and it's brought in over $40k in gross rents cash flowing about $800/month.

The property produced $48K gross over the past year.