Just want to simplify your scenario:1.

I will discuss loan repayment options in a separate post but this is a simplified answer.This avoids the "compounding" of interest since the bank is legally only allowed to charge you in interest what you normally would have paid without forbearance.

Real estate investing has a lot of 'gray area' What I'm saying is in most cases it's illegal to accept a commission without being a licensed professional. if you over complicate the thinking from the beginning you'll talk or think yourself out of deals out of habit later on.I'm not sure I can simplify my previous post, but if your still overthinking it, I can try to paint a picture for you.Also don't be so anxious about getting your reale estate license!!!

Simplified example:Purchase price : $100kDownpayment: $20kCapital Improvements: $10kSold price: $150kYou paid into the property $30k (which is your cost basis) and Profited $20k which would be taxable income.$20k to be taxed on Ordinary income rate (dependent on your other income sources) AND subject to self-employment income tax (consult with a CPA).

Depending on your market, you may want to find a local syndicator that you can invest with as an LP and learn the process directly with them.You can check out the book Passive Investing Made Simple which covers a lot of the details at a simplified level.This could be different if you are looking at small multifamily like 4 units.

I think investors who apply hard and fast rules like "no sheetrock" are looking for ways to simplify their worlds, and quickly narrow down their prospects when looking for properties. 

It surely has been a journey from bookkeeping to CFO, speaking to being an author on how to automate, manage and simplify real estate and property management accounting for all our clients and CPA's.

If its a 6% dividend, then that's a combined 9% return.Technically that would translate into an 8.7% return, but beyond that your overly simplified calculations leave out numerous very important facts, namely the policy fees and how the loan repayments negatively effect your ability to scale your real estate holdings.I'm going to rearrange the percentages slightly because I don't know of many people who are wealthy that are going to put their money into active income investments like hard money and get taxed at 40% when a passive stock market only pays 20%, plus stock investing is much more familiar and likely to actually happen for readers of the post as opposed to hard money which is a niche industry. 

It simplified things for the landlord.

Capital.I've been thinking about beginning with a Simplified JV and offering a 7.5% preferred return and a 25/75 split on deals I'm sourcing and turning around by fixing whatever issues prompted the value add component through completion and exit, but where I also have no skin in the game.