If AHP does not return his capital then he's made an interest-free loan to them and not even collected his principal balance back.

If your manager is just 'keeping an eye' on things, collecting/reminding on a few rents here and there and some light cleanup while being compensated in free or reduced space rent then classifying them as 1099 subcontractor is great. 

. -- They have fixed fee structure to compare with anderson advisors without any blatant selling tactics https://www.kbkg.com/" class="redactor-autoparser-object">https://www.kbkg.com/https://go.empiretaxusa.com/61...If you attend any tax-wise or other 3 day events with anderson which costs $197 + travel expenses you will get enough knowledge on how they operate and you should be able to understand what LLC structure is beneficial, also they have a large collection of online videos with plentiful of information on youtube and tax tuesday webinars.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

I don't rent furnished and others may be able to point out where this is flawed, but I would consider renting the furniture SEPARATE of the unit because that may allow you to collect a deposit on the furniture.

@Bryan HartlenManaging low-end properties can be demanding due to higher tenant turnover, increased maintenance needs, and frequent rent collection issues.

Our PMS tracks all the incoming money in instances where we collect and must remit. 

Lastly, in this example, if you are only able to collect rents but have no equity on the property - that is worse for the investor than owning the property.

Advantages are we don’t have to furnish anything in the house and we collect the same amount of rent each month no matter how many members are in a house.

Just let the money live in the house and collect rent as the only ROI?