Passive investors should eat first and sponsors should bear risk first.

Or maybe eat more bacon!

Secondly, the extra $5k you have to come up with yourself - EVERY time - eats into the benefit.Hint: The useful purpose of applying for a HELOC is to gain you instant CASH (to invest)!

I was going to hold the home long term but now the increase would basically eat away at any of my cash flowDoes it still cash flow?

Dad will now only qualify for 250k capital gains tax exclusion and will probably end up having to pay taxes that eats up the profit.

Or, it could eat up all of your profit, which is most common.)

Would generally love to connect with anyone who has experience in the rent by the room model as this is my first time using this strategy.Thanks in advance :) I would rather eat gas station sushi then invest in a rent by the room property in Cleveland Heights.

Condo's typically are cheaper entries but have additional HOA costs which usually eat profits. 

Depending upon the size of the deal a hard money loan might eat 25% of the profit.

That is why people describe the commercial space as more of a dog-eat-dog environment.