There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

That's 50k a year gone and you are losing tax write-offs and equity potential.

Property taxes are 650, insurance 160, outsourced property management takes 10% of the rent, and another 10% of the rent is set aside each month for future repairs. 3750 x 0.8 = 3000. $3000 profit, minus about $2300 in mortgage, property taxes and insurance leaves about $700 cashflow, when I move out.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

And you would get to indefinitely defer all tax on the gain from the sale.

@Esther Iroko, They claim they will pay January rent by mid January?

There will always be posters who come out of the woodwork who claim to be able to beat terms or meet borrowing expectations.

With $1mm cash we can do 3 locations netting $40,000 before income tax per month.  

A successful rental property should offer positive cash flow, meaning your rental income should exceed your monthly expenses (mortgage, taxes, insurance, maintenance, etc.).To find the right tenants, ensure the property is priced competitively within the local rental market.