This includes determining if it is something you desire, can actually abide by the generous regulations, and the costs.I would think a tear down would be the last resort.JADU must have its own entrance. 

@Justin White It is generous of you to help your brother while he faces difficult times.

An 88%-12% split is quite generous.

If you feel that generous, you should give it to people that are starving to death in Africa or a battered-women's shelter instead of a tenant that wants a nicer house than they can actually afford.

I currently have a generous 401k from a previous employer that I can convert into a self-directed IRA and also some savings to tap into if needed.

I have a very generous employer willing to loan me $65,000 to buy my first investment property with little to no interest charge.

Hi Weis,I think your friend's offer is quite generous if he's a seasoned investor and knows what he's doing.  

You acquire a note for say the 35k like Bob generously illustrated then sell the first 105 payments to another investor allowing you to take that capital and do it all over again.

The owner is hands-off but the tenant has met the owner once.Thank you all for your input, and generous contributions to the BP community ~David

I still have my day job, so any loan I need, I want the decision to be based on those merits and not include any potential losses my company may have.There are also some generous tax deductions with a c-corp.