Quote from @Brandon Croucier: Quote from @Chris Seveney: They are more than a one man show - they are doing $10-12MM a year in lending (also have other parts of business) and have the people and systems in place includin g all above except the deal flow.How does one profitably run a PML company with numerous people only funding 10-12M a year?

And all properties need to be managed and supervised numerous times per year; giving residents the idea that no one is watching and/or no one cares will be a sure recipe for disaster. 

Dallas should recover so I would think it will appreciate over the next few years.

At the numbers you are talking about and where the market is heading you could pick up some very high quality NNN national credit tenant properties as commercial continues to recover. 

When including maintenance/cap ex, vacancy, pm, misc he will have little, and possibly negative, cash flow.if he invested almost $250k to add less than $150k of value (assume some of the current value came from the home appreciation), there is no cash flow until the initial negative equity position is recovered.  

@Stefano Mitrano I have seen numerous banks reacting if an asset is being transferred into an LLC.

They should ONLY include properties of the same size (sq ftg), and within a short distance form this property.Lastly, your profit comes after you recover your cash you put in. 

My core investing philosophy is pretty simple, and has done very well across almost two decades and numerous cities:1) Invest in cities with population (and job) growth2) Invest in parts of the city where household income is near the median (or slightly below)3) Invest in properties that provide cash flow from day 1 Thank you for sharing that. 

I faced numerous hurdles and stressful moments, but I persevered and built a successful approach.To tackle this challenge, I recommend starting early by building relationships and seeking investors.

With the numerous investors on this forum they have done this to, it is probably just the tip of the iceberg.