Mailing/emailing a notice to "start the clock" doesn't cost much and should be done to NOT lose time if tenant doesn't pay.

I was a student they offered to sponsor a deal for and it has cost me everything, literally. 

Trying to get a # from him about estimated remaining cost but got nothing.   

Fixed Mortgage does come with closing costs and points upfront which the HELOC does not, except a $95 annual fee. 

The cons, if the borrower doesn't pay on time or completely welshes on it then there's that oportunity cost. 

However, in California, each LLC incurs an $800 annual franchise tax plus gross receipts fees if revenue exceeds $250,000, and property insurance may cost more.

I have the ability to find properties that all in costs including rehab and purchase would only be 70 to 80% or ARV on properties. due to this I have been trying to find lenders that allow for less down and rehab coverage since the properties are so discounted.

If they tenant is $300 below market, that's costing you $3,600 a year.

A CPA who specializes in partnership issues can also likely talk through these issues with you.3) Depending on the size of the deal - Keep It Simple - the number of really complex agreements that come across my desk for a $500k property is crazy, and it ends up costing as much to do those tax returns as a comparable $5m deal

You can avoid costly mistakes.