Finally, of the extra $200k, how much are you putting into operating reserves? 

In this case, you would draft an operating agreement that specifies each partner's role—your friend providing the cash and you handling the rehab and management—and that profits and ownership are split evenly.

These repairs are through a contracting company owned and operated by the PM. 

Although he is a banker, he thinks having the ability to operate as a broker and place loans with 30+ other lenders, in addition to his bank, is the "best setup."

. - https://therentalgirl.com/tichttps://andysirkin.com/tenancy-in-common-tic/operating-and-m... - https://www.stonesalluslaw.com/tenancy-in-common-in-californ... - https://www.investopedia.com/terms/t/tenancy_in_common.asp - https://www.rocketmortgage.com/learn/tenancy-in-common - https://www.allcalifornia.com/tenancy-in-common - https://andysirkin.com/tenancy-in-common-tic/guidance-for-se... - https://www.dre.ca.gov/files/pdf/tic_guidelines.pdfby the way I received a lawyer referral who is supposedly familiar with tic in California.  

You might have to dig into off-market deals, though, since inventory is tight.Multi-Family: Always a safe bet if you can snag a good deal.

Using avantstay for a rental management company caused me to LOSE an average of $6711 per month as they were not able to provide enough rental income to pay the mortgages or operating expenses on the two vacation market houses.

But the "art" really only comes with time in market and a deep understanding of both the market and the operations of assets.

The issue with section 179 expense is that you normally have to operate at positive income.Under most circumstances, bonus depreciation is better since you can take bonus depreciation even if you operate at negative income. 

If you could furnish the rooms, I'd say that is best bet for cash flow.